US Stock Market Performance and Federal Reserve Meeting Minutes
On Wednesday, US stocks closed higher as investors weighed President Trump's proposed 25% tariff on imports and awaited the release of the Federal Reserve's meeting minutes for insights into future monetary policy decisions.
Benchmark Index Performance
* The S&P 500 (^GSPC) gained 0.24%, reaching a new record high of 6,144.15.
* The Nasdaq Composite (^IXIC) rose 0.07%, while the Dow Jones Industrial Average (^DJI) increased by 0.16%.
Federal Reserve Meeting Minutes
The minutes from the Fed's January meeting revealed that most central bank officials supported maintaining a restrictive monetary policy due to concerns about persistent inflation. However, they also noted that policy could be eased if the economy weakened or inflation fell more rapidly than anticipated.
Tariffs and Trade
Trump's recent tariff threat on autos, chips, and pharmaceuticals added uncertainty to the market. The president announced a flat tariff of around 25% on all foreign automakers, effective from April 2. These tariffs come on top of the 25% tariffs on steel and aluminum imports, which are scheduled to take effect on March 12.
Other Notable Market News
* Short sellers lost $73 billion in the first part of 2025, amid a market rally.
* Super Micro Computer, a top performer in the S&P 500 this year, faced skepticism from analysts over potential deals with TSMC and Broadcom.
* Apple stock declined after Bank of America analysts warned that tariffs could force the company to raise prices.
* Hims & Hers Health shares surged on news of its acquisition of Trybe Labs, providing at-home lab testing capabilities.
* Nikola, the electric vehicle maker, filed for bankruptcy after years of struggles.
* Alibaba is reportedly in talks to invest in DeepSeek, a Chinese AI chatbot operator.