Stock Market Today, Jan. 12: Markets Dip on DOJ Powell Probe, Rebound With Alphabet

The S&P 500 (SNPINDEX:^GSPC) rose 0.15% to 6,976.71, the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.26% to 23,733.90, and the Dow Jones Industrial Average (DJINDICES:^DJI) gained 0.17% to 49,590.19 as markets rebounded from an early DOJ‑Fed shock.

Market movers

Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) climbed as its valuation hit $4 trillion, helping stabilize mega‑cap tech despite policy jitters. In contrast, JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), and American Express (NYSE:AXP) lagged as credit‑card and big‑bank names absorbed Fed and regulatory headline risk.

What this means for investors

The market opened down nearly 1% after the DOJ opened a criminal investigation into Fed chair Jerome Powell, and President Trump called for a "10% cap" on credit card interest rates. Many financial stocks were down on the volatile news -- particularly the credit card companies themselves. However, this volatility played a significant role in sending gold nearly 2% higher, as it continued its incredible rally -- now up 73% over the last year.

Ultimately, it was Alphabet that stole the show after reaching a $4 trillion market capitalization and firmly establishing itself as the second-largest company in the world. Over the weekend, Alphabet:

• partnered with Walmart, Wayfair, and Shopify to enable AI-powered shopping through its Gemini AI platform
• partnered with Walmart to greatly expand its drone deliveries via Alphabet's Wing subsidiary
• was picked by Apple to power the next version of Siri, using its Gemini AI models

All in all, it was a positive day for the market, particularly for investors optimistic about the AI industry and its expanding list of potential use cases.

JPMorgan Chase is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Alphabet and Shopify. The Motley Fool has positions in and recommends Alphabet, Apple, Goldman Sachs Group, JPMorgan Chase, Shopify, and Walmart. The Motley Fool recommends Wayfair. The Motley Fool has a disclosure policy.