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U.S. stocks rose, S&P 500 hit a new high, as Fed minutes upheld current policy.
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IntroductionIn the early hours of February 20th Beijing time, U.S. stocks edged higher on Wednesday, with the S& ...
In the early hours of February 20th Beijing time,How is the regular deposit of MT4 platform U.S. stocks edged higher on Wednesday, with the S&P 500 index setting another record high. The latest minutes from the Federal Reserve's monetary policy meeting revealed that officials plan to maintain the current policy until they observe further improvements in inflation. Markets continue to focus on the developments of Trump's tariff policies and their potential impact on the economy.
Specifically, the Dow Jones increased by 71.25 points, or 0.16%, to 44,627.59 points; the Nasdaq rose by 14.99 points, or 0.07%, to 20,056.25 points; and the S&P 500 index gained 14.57 points, or 0.24%, to 6,144.15 points. During trading, the S&P 500 index reached an all-time high of 6,147.43 points, demonstrating the market’s resilience amid uncertainty.
Piper Sandler's Chief Market Technician Craig Johnson noted that despite pressures like tariffs and inflation, U.S. stocks continue to show strong resilience. He stated that the market may remain volatile with declining U.S. bond yields, falling oil prices, and a weakening dollar.
New York CFRA Research's Chief Investment Strategist Sam Stovall also emphasized that despite uncertainty in global trade and the risk of high valuations, the market remains optimistic. Stovall believes the Federal Reserve will rely on data and maintain unchanged monetary policy until inflation makes more progress.
However, there are still concerns in the market about Trump's tariff policies. The proposed 25% tariffs on imported cars, chips, and pharmaceuticals introduced on Tuesday have drawn attention, although he has yet to clarify if these tariffs will be universally applied and they could potentially go into effect in April.
The Federal Reserve's minutes show that officials unanimously agreed that interest rates should remain at restrictive levels, given the economy's near-full employment and persistent inflation. The minutes also mentioned that Trump's tariff policies and their potential economic impact have become a focus for the officials. Several officials indicated that despite risks to the economy, the inflation outlook still presents upward pressure, making them cautious about further rate cuts.
Overall, while the market is at historical highs, investors still need to monitor the impact of Trump's policies on inflation and the economy, as well as how the Federal Reserve will handle these uncertainties in the future.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
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