US markets rebound from intraday lows; Dow Jones and S&P 500 hits record high

The US markets closed in green at record high levels after witnessing heavy selling pressure in the initial hours. The S&P 500 index made a record high by gaining 0.2% amid the probe into the Federal Reserve by the Department of Justice. The Dow Jones also clawed back 500 points of losses to close 80 points higher on Monday. While NASDAQ closed 0.3% higher, led by technology shares.

Shares of key credit card lenders like Capital One and Citigroup plunged 7% and 3% after Trump announced a cap on credit card interest at 10%. Investors digested the impact of the interest rate cap and are looking forward to the quarterly earnings by major banks like JPMorgan Chase.

Shares of retailer Walmart jumped 3% as it is set to join the NASDAQ 100 index, replacing AstraZeneca effective January 20. Additionally, shares were also in focus as the company plans to team up with Google on its rollout of AI-assisted shopping tools.

According to media reports, Apple would team up with Google to integrate Gemini in the next version of its virtual assistant Siri. Following the news, shares of Apple Inc. edged 0.3% higher and Alphabet's share price jumped 1%. Recently, Alphabet surpassed Apple Inc. to become the world’s second most valued company.

Investors and market participants kept the broader market sentiment positive amid expectations of a mild CPI report and upcoming quarterly earnings.

While the US futures market remained steady on Tuesday morning despite Trump’s new announcement. President Donald Trump announced that any country that does business with Iran will face 25% tariffs on any goods supplied to the US, effective immediately.