US Stocks Close Higher, Assessing Trump's Tariffs and Fed Minutes

US stocks closed higher on Wednesday as investors weighed President Trump's latest round of tariffs and analyzed the Federal Reserve's latest policy statement.

The benchmark S&P 500 (^GSPC) rose 0.2% to a fresh record high of 6,144.15, after also setting a record on Tuesday. The Nasdaq Composite (^IXIC) and Dow Jones Industrial Average (^DJI) both gained around 0.1%.

The Fed's minutes from its January meeting, released Wednesday, showed that most central bank officials supported holding interest rates steady at restrictive levels amidst concerns about persistent inflation. The committee emphasized the need for further progress on inflation before adjusting rates.

Trump's Tariffs and Trade Policy

Trump's recent tariff announcement has been a key focus for investors. On Tuesday, he threatened additional duties on imports of autos, chips, and pharmaceuticals. The announcement follows previous tariffs imposed on steel and aluminum.

Analysts are monitoring the potential impact of these tariffs on trade flows and the overall economy. Some believe they could lead to higher prices for consumers and businesses.

Fed Minutes and Monetary Policy

The Fed's minutes reiterates the central bank's commitment to keeping interest rates restrictive to control inflation. However, it also acknowledges the uncertainties surrounding the economic outlook.

Investors will be closely watching the Fed's next meeting in March for further clues on its monetary policy path. Markets currently anticipate a rate cut later this year, but the Fed's minutes have dampened those expectations somewhat.

Other Market News

* Shares of Apple (AAPL) rose on news of the launch of its more affordable iPhone 16e.
* Intel (INTC) stock fell on concerns about potential breakups and deals with TSMC and Broadcom.
* Alibaba (BABA) is reportedly exploring potential investments in DeepSeek, a Chinese AI chatbot operator.
* European stocks retreated on Wednesday due to disappointing earnings and tariff concerns.