U.S. Stocks Mostly Higher as Investors Weigh Latest Tariff Threats and Fed Minutes

On Wednesday, U.S. stocks traded mostly higher as investors digested President Trump's latest tariff salvo and analyzed the Federal Reserve's meeting minutes for insights into future monetary policy.

The benchmark S&P 500 (^GSPC) rose by about 0.3% after closing at a new record high on Tuesday, while the tech-heavy Nasdaq Composite (^IXIC) also gained around 0.2%. The Dow Jones Industrial Average (^DJI) traded nearly flat.

Fed Minutes Reveal Cautious Approach

The minutes from the Fed's January meeting, released on Wednesday, indicated that most central bank officials supported maintaining restrictive monetary policy. While acknowledging that the economy remained strong and inflation elevated, officials noted the potential for policy easing if labor market conditions deteriorate, economic activity falters, or inflation returns to the 2% target more quickly than anticipated.

The minutes also emphasized the need to assess the evolving outlook for economic activity and the importance of further progress on inflation before adjusting interest rates.

Trump's Tariff Announcements

President Trump's trade-related announcements have been a key focus for investors. On Tuesday, he announced plans to impose additional tariffs on autos, chips, and pharmaceuticals. A flat tariff of "around 25%" would apply to all foreign automakers and take effect as early as April 2.

Last week, Trump announced global 25% tariffs on steel and aluminum imports, effective March 12. He later ordered federal agencies to study reciprocal tariffs on U.S. trading partners. Tariffs of 25% on Mexico and Canada are expected next month, while 10% duties on China are already in place.

Market participants are closely monitoring the potential impact of these tariffs on corporate earnings and global trade flows.

Other Notable Market Updates

* Intel (INTC) shares fell more than 5% after analysts raised concerns about potential breakup deals with TSMC (TSM) and Broadcom (AVGO).
* Apple (AAPL) could face price increases if Trump's latest tariff threats are implemented, according to Bank of America.
* Hims & Hers (HIMS) stock surged 20% after announcing plans to provide at-home lab testing through its platform.
* Electric vehicle maker Nikola (NKLA) filed for bankruptcy, ending a turbulent period for the once-popular company.
* European stocks retreated due to disappointing earnings and concerns about Trump's tariff plans.