US Stocks Mixed on Tuesday Leading Into Shortened Holiday Week
Wall Street Overview
US stocks exhibited a mixed performance on Tuesday at the beginning of a shortened trading week due to the Presidents Day holiday. The benchmark S&P 500 (^GSPC) gained nearly 0.2%, with substantial gains occurring in the final 10 minutes of trading, reaching a fresh record close of 6,129.58. Meanwhile, the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) closed marginally in the green.
Market Drivers
* Fed and Trump Policies: Investors closely monitored potential policy changes by the Federal Reserve and President Donald Trump. Fed officials signaled a firm stance against interest rate cuts to combat inflation, while Trump's tariffs and Ukraine talks were also in focus.
* Earnings Season: Several S&P 500 companies released earnings this week, including Baidu and Alibaba from the trillion-dollar Chinese tech industry.
* Individual Movers: Intel (INTC) experienced a notable gain, reportedly due to speculation of a potential deal to split the chipmaker. Walgreens (WBA) and Super Micro Computer (SMCI) also saw significant increases.
* 2025 Stock Market Rally: Market breadth is expanding, with a greater number of S&P 500 companies outperforming the index compared to recent years, and less reliance on the "Magnificent Seven" tech stocks.
Key Company News
* Meta (META): The social media giant's stock faced pressure, jeopardizing its 20-session winning streak.
* Nike (NKE): A partnership with SKIMS boosted Nike's shares by over 5%.
* Super Micro Computer (SMCI): Continued momentum in AI semiconductor stocks saw Super Micro rise by over 16%.
Other Market News
* Strong Dollar Challenges Big Tech: The dollar's surge has impacted the earnings of several Big Tech companies, leading to warnings of slower revenue and earnings growth.
* Investors Bullish on Stocks: Despite geopolitical concerns, investors remain bullish, with BofA's survey indicating cash levels at 15-year lows.
* Homebuilder Confidence Dips: The NAHB/Wells Fargo Housing Market Index fell to its lowest level in five months due to concerns about tariffs, high mortgage rates, and housing costs.
* Fed Speakers Lay Ground for January Minutes: Fed officials emphasized the need for caution in reducing interest rates, suggesting a focus on Wednesday's release of minutes from the January meeting.
* Europe Stocks Pause on Ukraine Talks: European markets remained stable as the US and Russia began negotiations on ending the Ukraine war.