US stocks closed modestly higher on Wednesday, with the S&P 500 hitting its second straight all-time closing high. Investors are scrutinizing the minutes from the Federal Reserve’s January policy meeting, which show policymakers expressing concern over stubborn inflation and the potential impact of President Trump’s tariff plans.
The Fed left interest rates unchanged, but the minutes reveal a cautious tone, with some policymakers discussing the possibility of economic slowing ahead. This has sparked speculation about the likelihood of rate cuts in the future.
Meanwhile, US President Trump announced tariffs “in the neighborhood of 25%” on autos, semiconductors, and pharmaceuticals, raising concerns over the consequences of a global trade war.
The Dow Jones Industrial Average rose 71 points, while the S&P 500 gained 14.57 points. Analog Devices beat quarterly profit and revenue estimates, driving up its shares by 9.7%.
However, not all companies fared well. Nikola filed for Chapter 11 bankruptcy protection, plunging its shares 39.1%. Housing starts tumbled 9.8% in January, citing soft demand and elevated mortgage rates.
The Nasdaq Composite edged up 14.99 points, while the NYSE saw a higher number of new lows than advancers. The S&P 500 posted 28 new 52-week highs and seven new lows.
Source: https://www.reuters.com/markets/us/futures-tread-water-markets-weigh-trumps-auto-tariffs-threat-fed-minutes-tap-2025-02-19