S&P 500 Closes at Record as Dollar Weakens, Gold Stays Elevated

The S&P 500 and Dow closed at record highs late on Monday, led by gains in technology stocks and a strong rise in Walmart shares, while US financial stocks fell after renewed political focus on credit card rates. In London, the FTSE 100 ended at a record close, supported by sharp gains in mining and precious metal stocks as gold traded just below $4,600 per ounce. The US dollar remained under pressure, while sterling traded firmer near $1.348. The yen weakened sharply, falling to around 159.0 per dollar, while oil prices pushed higher on concerns over potential supply disruption from Iran.

Equities

The FTSE 100 closed at a record high late on Monday, ending the session up 0.16% after reversing earlier losses. Gains were led by mining and precious metal stocks, helped by strength in commodity prices. Gold miners rose sharply after spot gold climbed above $4,600 per ounce late in the session, lifting the FTSE’s precious metals index by more than 5%. Industrial metals stocks also rose, supported by firmer copper prices, which pushed the broader mining sector higher. The FTSE 250 closed slightly lower, down 0.06%, ending a five-day run of gains.

Among individual UK shares, banking stocks fell after comments from US President Donald Trump on Friday calling for a one-year cap on credit card interest rates. Barclays shares closed 2.4% lower on Monday, while Close Brothers Group fell 2.3%, reflecting concerns about potential pressure on consumer finance margins. Outside the financial sector, IQE surged more than 40% late on Monday after the semiconductor wafer maker said it expects revenue and adjusted core profit for the 2025 financial year to be at the top end of forecasts. Oxford Nanopore Technologies closed over 9% higher after the biotech group guided for annual revenue growth ahead of expectations. Plus500 ended the day up 5.4% after the trading platform reported annual revenue and core profit above forecasts, helped by its expansion into US futures trading. Separately, fresh data showed the UK jobs market cooled in December, with hiring falling again, keeping attention on the Bank of England’s rate outlook ahead of this week’s GDP figures.

In the US, Wall Street ended Monday with record closing highs for both the S&P 500 and the Dow Jones Industrial Average. The S&P 500 closed up 0.16%, while the Dow added 0.17%. The Nasdaq Composite closed 0.26% higher. Walmart shares rose 3% late on Monday, supporting both the S&P 500 and the Nasdaq after the retailer’s recent move to list on the Nasdaq. The stock has also been confirmed for inclusion in the Nasdaq-100 later this month, a change expected to attract additional index-linked investment.

Technology stocks also closed higher ahead of the US earnings season, which begins on Tuesday with results from JPMorgan Chase and other major banks. Financial stocks moved in the opposite direction. Citigroup shares closed 3% lower, American Express fell more than 4%, and Capital One ended down over 6% late on Monday following renewed political focus on credit card interest rates. Buy-now-pay-later group Affirm Holdings also closed sharply lower. Investors are now focused on Tuesday’s US inflation data for further signals on the interest rate outlook.

Forex & Commodities

Currency markets were led by renewed weakness in the Japanese yen, which fell to 158.98 against the US dollar, its lowest level since July 2024. The move followed reports that Japan’s prime minister, Sanae Takaichi, is preparing to dissolve the lower house of parliament and call a snap election later this month. Investors interpreted the political shift as increasing the likelihood of looser fiscal policy. The yen also fell to record lows against the euro and Swiss franc, and weakened against sterling, which was trading at $1.3475.

The US dollar remained under pressure after falling sharply late on Monday. The dollar index was last near 99.01, as markets reacted to news that the Trump administration has opened a criminal investigation into Federal Reserve chair Jerome Powell. While US Treasury yields steadied, with the 10-year yield around 4.195, the episode has raised fresh questions about the Federal Reserve’s independence. Fitch reiterated that central bank autonomy remains an important support for the US sovereign credit rating. Expectations for two US interest rate cuts this year were largely unchanged.

Gold prices edged lower in Asian trading after rising to record levels in the previous session. Spot gold was trading around $4,594 per ounce after touching $4,630 late on Monday, with some investors taking profits. Silver was near $84.86 per ounce after setting a new all-time high earlier in the week, while platinum and palladium traded lower following recent peaks. Citi raised its short-term price targets for both gold and silver, citing sustained investment demand.

Oil prices extended gains early this morning. Brent crude was trading close to $64.34 a barrel and US crude near $59.95, supported by concerns over potential supply disruption from Iran amid widespread protests. At the same time, markets continued to assess the prospect of increased Venezuelan oil supply following political changes in Caracas.