U.S. Stocks Close Higher as Investors Weigh New Tariffs and Fed Minutes
U.S. stocks climbed on Wednesday, extending their rally, as investors digested President Trump's latest tariff threats and the minutes from the Federal Reserve's January meeting.
The S&P 500 (^GSPC) gained 0.24% to close at a record high of 6,144.15. The Nasdaq Composite (^IXIC) advanced 0.07%, while the Dow Jones Industrial Average (^DJI) rose 0.16%.
Trump's Tariff Threats
President Trump announced plans to impose additional tariffs of approximately 25% on imports of autos, chips, and pharmaceuticals. The move has raised concerns among automakers and other businesses, who fear the impact on global trade.
Fed Minutes
The minutes from the Fed's January meeting revealed that most policymakers supported holding interest rates at current levels. However, they noted that policy could be eased if labor market conditions deteriorate or inflation falls below expectations.
Other Market News
* Intel (INTC) shares declined 5% following reports that potential deals with TSMC (TSM) and Broadcom (AVGO) may face challenges.
* Apple (AAPL) could face pressure to raise prices if Trump follows through on his tariff threats, according to Bank of America.
* Super Micro Computer (SMCI) shares surged 6%, fully recovering losses from a scathing Hindenburg Research report last summer.
* Alibaba (BABA) is reportedly in talks to invest in DeepSeek, a Chinese AI chatbot operator.
Technical Analysis
The S&P 500 has broken above its previous record high and is currently trading in uncharted territory. The Nasdaq Composite has also made new all-time highs. However, the Dow Jones Industrial Average is still below its record high set in January 2020.
Outlook
Investors will continue to monitor developments in the trade war and the Fed's monetary policy stance. The release of economic data and company earnings will also influence market sentiment in the coming days.