UPDATE: U.S. equity markets concluded the day with slight gains on Wednesday, as the S&P 500 increased by approximately 0.25%, marking its second consecutive closing peak, while both the Dow and Nasdaq experienced minor upticks.
The minutes from the Federal Reserve’s January policy meeting indicated worries about the potential implications of President Donald Trump’s policy initiatives, especially concerning tariffs, on the central bank’s endeavor to reduce inflation to its 2% target.
Liz Miller serves as the president of Summit Place Financial Advisors.
“The market appears to be processing the FOMC meeting minutes and recognizing that this group of highly skilled economists doesn’t possess greater foresight into upcoming fiscal strategies than the investors themselves. We feel assured of a commitment to stability, but today’s market reaction seems somewhat subdued, indicating that investors are prioritizing sectors with clear earnings growth while cautiously awaiting clarity on forthcoming policies,”
As the fourth-quarter earnings season approaches its end, 74% of S&P 500 companies have reported results that surpassed expectations, as noted by LSEG.
This includes Analog Devices, whose shares rose by 9.7% on Wednesday after the chipmaker exceeded quarterly profit and revenue forecasts.
Conversely, specialty chemicals firm Celanese plummeted by 21.5% after posting a quarterly loss.
Additionally, Shift4’s shares fell by 17.5%, following the announcement of its fourth-quarter results and its agreement to acquire Global Blue in a transaction worth $2.5 billion. Conversely, Global Blue’s shares surged by 17.5%.
Meanwhile, electric truck manufacturer Nikola saw a decline of over 39% after filing for Chapter 11 bankruptcy protection.
