Last Updated: 4:28 PM EST
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Stock indices closed slightly higher in today’s trading after the Federal Reserve released its most recent meeting minutes. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.05%, 0.24%, and 0.16%, respectively.
Interestingly, the central bank took a cautious approach at its January meeting and kept interest rates steady due to uncertainty about the economy and inflation. According to meeting minutes, officials discussed the potential impacts of tariffs and changes in immigration policy on the economy, as well as the difficulty in distinguishing between persistent and temporary changes in inflation.
It is worth noting that the Federal Reserve’s decision to hold rates steady was unanimous. In fact, officials believed that the current interest rates were already relatively low, thanks to the previous rate cuts. As a result, this gave the Fed some more time to continue assessing the economy. However, officials were still worried that policy changes could cause inflation to rise above the Fed’s target of 2%.
Meanwhile, the latest housing data released by the U.S. Census Bureau showed that there was a decline in housing starts. In January, housing starts dropped by 9.8% to 1.366 million at an annualized rate, which fell short of expectations. Single-family housing starts saw an 8.4% decline while building permits inched up 0.1% sequentially. However, housing completions rose 7.6% from the revised December estimate, which indicated some positive momentum in the housing market.
First Published: 3:36 AM EST
U.S. futures were little changed on Wednesday morning following a positive session that saw the S&P 500 index (SPX) reach a new all-time high. Meanwhile, futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 were up 0.11%, 0.05%, and 0.08%, respectively, at 3:31 a.m. EST, February 19.
In regular trading on Tuesday, the S&P 500 gained 0.24%. Also, the Dow Jones and the Nasdaq Composite (NDAQ) saw modest increases of less than 0.1%.
Perhaps, investors shrugged off concerns about trade policies. Further, optimism about a potential resolution to the conflict in Ukraine and its positive impact on European markets, helped boost market sentiment.
In major stock market news, Intel (INTC) stock jumped 16% due to reports that Broadcom (AVGO) and Taiwan Semiconductor (TSM) might bid for parts of the troubled chipmaker. Also, Super Micro Computer (SMCI) shares rose 16% as the stock continued its rally from last week following a positive outlook for AI-driven sales growth.
Moreover, Walgreens Boots Alliance (WBA) shares climbed 14% after news emerged that a possible deal to sell the company to private equity firm Sycamore Partners might be back on the table.
In today’s economic calendar, Housing Starts and Building Permits reports for January month are scheduled for release. In addition, minutes from the Federal Reserve’s January meeting are slated for release today. This will provide insights into the Fed’s monetary policy stance.
Looking ahead, investors are eyeing earnings reports from major companies, including Etsy (ETSY), Rio Tinto (RIO), Carvana (CVNA), Wix.com (WIX), and SolarEdge Technologies (SEDG), all of which are set to release their results today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.56%. Simultaneously, WTI crude oil futures are trending higher, hovering near $72.29 per barrel as of the last check.
Elsewhere, European indices opened mixed on Wednesday as investors evaluated several earnings reports and a higher-than-expected U.K. inflation report.
Asia-Pacific Markets Traded Mixed on Wednesday
Most of the Asia-Pacific indices were mixed today following U.S. President Donald Trump’s proposal to impose tariffs of about 25% on autos, semiconductors, and pharmaceutical imports.
At the same time, Hong Kong’s Hang Seng Index was down 0.14%. Also, Japan’s Nikkei and Topix indices declined 0.27% and 0.3%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices were up 0.81% and 1.46%, respectively.
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