Microsoft, Tesla, and Analog Devices lead gains while investors assess inflation and Federal Reserve outlook
On Wednesday, the S&P 500 set another record high, extending its upward trend despite the Federal Reserve’s cautious stance and US President Donald Trump’s threat of additional tariffs, according to CNBC.
The index rose 0.24 percent to close at 6,144.15, marking its second consecutive record close. During the session, it also touched a new all-time high.
The Nasdaq Composite gained 0.07 percent, ending at 20,056.25, while the Dow Jones Industrial Average advanced 71.25 points, or 0.16 percent, to finish at 44,627.59.
Microsoft shares increased by 1.3 percent, leading gains in the technology sector after the company introduced its first quantum computing chip.
Tesla saw an increase of nearly 2 percent, while Analog Devices surged almost 10 percent following strong quarterly earnings that exceeded expectations.
On Tuesday, Trump raised the possibility of a 25 percent tariff on imported autos, chips, and pharmaceuticals. While he did not specify whether these tariffs would be broad or targeted, he indicated they could take effect as early as April 2.
“I think there’s a lot of noise tied to DOGE, Elon Musk, and tariffs in the short-term, which is what you’re seeing today. And I think a lot of this stuff will linger,” said Jim Elios, founder, and chief investment officer at Elios Financial Group.
“It’s the Trump effect with headlines that are weighing on markets and causing some pain. In the long term, I’m still really bullish about how this can become a pro-business environment,” added Elios.
Meanwhile, investors assessed the latest Federal Reserve meeting minutes, which revealed that central bank officials want further progress on inflation before reducing interest rates.
They also expressed concerns about the potential economic impact of Trump’s proposed tariffs.
Federal Reserve Vice Chair Philip Jefferson indicated that the American central bank could take its time deciding on the next policy move, citing a robust economy and inflation still above target, according to Reuters.
He noted that the US economy has performed solidly, and the labour market is in a good place, although inflation remains high compared to the 2 percent target.
