U.S. Stocks Mixed as Investors Await Fed Minutes, Trump Tariffs
U.S. stocks exhibited a mixed performance on Wednesday as investors balanced President Trump's recent tariff announcement and anticipated the release of Federal Reserve minutes for insights into future monetary policy.
The benchmark S&P 500 (^GSPC) gained a modest 0.1% after achieving a new record high on Tuesday, while the tech-heavy Nasdaq Composite (^IXIC) hovered slightly positive. Conversely, the Dow Jones Industrial Average (^DJI) slipped 0.3%.
Markets are in a wait-and-see mode as they assess the potential impact of President Trump's revised tariff policy. However, the S&P 500's recent all-time high suggests that stock markets may exhibit resilience amid these policy changes.
Another tariff expansion emerged on Tuesday evening, as the president hinted at additional duties on automobiles, semiconductors, and pharmaceuticals. All foreign automakers would be subject to a 25% tariff, which could take effect as early as April 2nd.
Investors are cautious ahead of the release of minutes from the Fed's January meeting, scheduled for Wednesday afternoon. The focus lies on policymakers' perspectives on potential inflationary pressures from Trump's tariffs and the implications for interest rates.
Etsy (ETSY) released disappointing financial results on Wednesday, contributing to a 6% decline in its stock value.
Other Key Market News
* The "Magnificent Seven" tech stocks (Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, Nvidia) have underperformed in 2025 compared to their previous market leadership. Apple's iPhone 16e, priced at $599, has received a muted market response.
* Super Micro Computer stock has surged 6% amid a weeklong recovery from a report alleging accounting violations.
* Hims & Hers shares have soared 20% following the acquisition of Trybe Labs, which enables at-home lab testing.
* Alibaba is reportedly in talks to invest in DeepSeek, a Chinese AI chatbot operator.
* European markets declined on Wednesday due to disappointing earnings and concerns over potential tariffs.
* Nikola, an electric vehicle maker, has filed for bankruptcy after several years of struggling.
* President Trump has proposed a 25% tariff on auto imports from early April, affecting global automakers.
* Asian stocks have retreated from their recent rally due to tariff threats and concerns over the Chinese stock market.
* HSBC reported stronger-than-expected profits and announced a share buyback.
* Oil prices edged higher as peace talks between U.S. and Russia continued in the context of the Ukraine-Russia conflict.