The U.S. stock market continues to be resilient amid the possibility of further changes to tariff policy and indications that the Federal Reserve intends to remain patient with further interest rate cuts. Benchmark S&P 500 closed at an all-time high for the second straight day while tech-heavy Nasdaq Composite and blue-chip Dow Jones Industrial Average also recorded gains.
The S&P 500 closed at a record 6,129.58 points on Tuesday before improving by another 14.57 points or 0.24% on Wednesday for a 6,144.15 close. The index also cleared its intra-day record, reaching 6,146.80 at one point.
Nasdaq soared to 20,097.73 in the afternoon before sliding to a modest gain of 14.99 points or 0.07% to close at 20,056.25. Dow Jones jumped by 71.25 or 0.16% to end the day at 44,627.59 points.
Investors are still waiting to see the full impact of the new tariff regulation that includes a 25% tariff on imports of steel and aluminum into the United States. Additionally, the new administration announced a reciprocal tariffs policy that could become effective in April.
Additionally, the markets are digesting the minutes from the Fed’s January meeting, which were released on Wednesday. According to the release, Federal Open Market Committee officials are waiting for “further progress on inflation” before thinking about adjusting interest rates.
“Many participants noted that the Committee could hold the policy rate at a restrictive level if the economy remained strong and inflation remained elevated, while several remarked that policy could be eased if labor market conditions deteriorated, economic activity faltered, or inflation returned to 2 percent more quickly than anticipated,” the released noted.