US Stocks Mixed Amid Fed Policy and Ukraine Talks
On Tuesday, US stocks exhibited a mixed performance as investors focused on potential actions by the Federal Reserve and President Donald Trump.
The S&P 500 (^GSPC) rose nearly 0.2% to close at a record high of 6,129.58, with most gains occurring in the final minutes of trading. The Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) also finished slightly in the green.
Uncertainty over the path of interest rates weighed on investors, who anticipated clues from the release of the Federal Reserve's January meeting minutes on Wednesday. Fed officials have indicated their belief in maintaining current rates to combat inflation.
Investor attention was also drawn to the ongoing US-Russia talks aimed at ending the Ukraine conflict. The talks commenced in Saudi Arabia after the meeting of Trump and Putin's teams on Monday.
Earnings season continued with results from 46 S&P 500 companies due this week. Baidu's (BIDU) revenue decline signaled the start of looming results from China's tech industry.
Notable gainers included Intel (INTC), up 16% amidst rumors of a potential deal that would split the chipmaker. Nike (NKE) surged 5% following its partnership announcement with SKIMS.
Tesla (TSLA) made headlines as its CEO, Elon Musk, reportedly gained access to sensitive data from the Social Security Administration, leading to leadership changes.
The US dollar's recent strength emerged as a concern for tech giants, as it can adversely impact revenue from overseas sales. Apple (AAPL), Alphabet (GOOG), Meta (META), and Microsoft (MSFT) have significant international exposure, and their earnings reports have reflected negative impacts from currency exchange.
Homebuilder confidence fell to its lowest level in five months amid concerns over tariffs, elevated mortgage rates, and high housing costs. The National Association of Home Builders survey indicated a decrease in builder optimism.
Chip stocks surged in early trading, with Nvidia (NVDA), Micron (MU), and Intel (INTC) posting gains. Super Micro Computer (SMCI) jumped almost 12%.
While the S&P 500 outperformed the "Magnificent Seven" tech stocks, analysts noted that a wider range of companies were contributing to market performance.
Overall, the US stock market remains cautious as investors await further clarity on the direction of interest rates and the outcome of the Ukraine talks.