US Stocks Open Lower Amid Tariff Concerns and Fed Minutes
Summary:
* US stocks opened lower on Wednesday as investors weighed President Trump's latest tariff threats and awaited the release of the Federal Reserve's meeting minutes for insights into future policy.
* The S&P 500 and Nasdaq Composite fell roughly 2% each, while the Dow Jones Industrial Average declined 0.3%.
Key Points:
* Investors are cautious amid the potential impact of President Trump's planned 25% tariffs on automobiles, chips, and pharmaceuticals.
* The Federal Reserve's meeting minutes, scheduled for release later today, are expected to provide clarity on policymakers' views on inflation and potential rate cuts.
* Despite the downturn, the S&P 500 reached a record high on Tuesday, suggesting resilience in the face of trade policy uncertainty.
Company News:
* Apple (AAPL) unveiled the budget-friendly iPhone 16e, featuring the company's A18 chip and an upgraded camera system.
* Super Micro Computer (SMCI) stock surged 6%, recovering from losses caused by allegations of accounting violations.
* Hims & Hers (HIMS) shares soared 20% on plans to introduce at-home lab testing through the acquisition of Trybe Labs.
* Alibaba (BABA) is reportedly considering investing in DeepSeek, an operator of an AI chatbot in China.
* Etsy (ETSY) stock fell 6% after holiday sales fell short of estimates.
* Nikola (NKLA) filed for bankruptcy, ending years of struggles for the electric-vehicle maker.
* European stocks retreated as earnings disappointed and concerns over Trump's tariffs lingered.