US Stock Market Updates: February 18, 2025

Market Overview:

US stocks traded mixed on Tuesday, with the S&P 500 setting a fresh record high, while the Nasdaq and Dow Jones Industrial Average closed slightly higher. The market's performance was influenced by potential policy moves from the Federal Reserve and policy uncertainty surrounding President Trump's administration.

Specific Movers:

* Intel (INTC) surged approximately 16% amid reports that rivals Broadcom and TSMC might pursue deals to split the chipmaker.
* Meta Platforms (META) declined over 3%, potentially breaking its 20-session winning streak.
* Nike (NKE) gained over 5% following the announcement of its partnership with the shapewear brand SKIMS.
* Super Micro Computer (SMCI), an AI play, rose over 13% as it works to avoid Nasdaq delisting.

Sector Performance:

* Chip stocks led the gains, with Nvidia, Micron, and Intel all performing well.
* Defense stocks also saw upward momentum, with Rheinmetall and Dassault reaching new highs.
* Homebuilder confidence dropped, with the NAHB/Wells Fargo Housing Market Index falling to its lowest level in five months.

Fed Policy:

* Fed officials have emphasized the need to maintain higher interest rates to curb inflation.
* Minutes from the Fed's January meeting, scheduled for release on Wednesday, will provide further insights into policymakers' thinking.

Other News:

* Elon Musk's companies are reportedly investigating the Social Security Administration's data.
* The US and Russia have begun discussions in Saudi Arabia to end the Ukraine war, while Europe has been excluded from the negotiations.
* A Bank of America survey revealed that investors are bullish on stocks, with cash levels reaching 15-year lows.
* Traders have identified a global trade war as the primary risk to markets, according to the same survey.