U.S. Stocks Rise as Investors Analyze Fed Meeting Minutes

February 20, 2025 - 03:31

U.S. stocks experienced a modest uptick on Wednesday, with the S&P 500 climbing approximately 0.25% to achieve its second consecutive record closing high. The Dow and Nasdaq also saw slight increases, reflecting a cautious optimism in the market.

The minutes from the Federal Reserve's January policy meeting highlighted concerns regarding the potential impact of President Trump's policy proposals, particularly tariffs, on the central bank's goal of maintaining inflation at a 2% target. Liz Miller, president of Summit Place Financial Advisors, noted that the market is currently processing the insights from the Fed's meeting. She emphasized that while there is confidence in the Fed's commitment to stability, investors remain focused on visible earnings growth amid uncertainties regarding future fiscal policies.

As the fourth-quarter earnings season wraps up, 74% of S&P 500 companies have reported better-than-expected results. Notably, Analog Devices saw a significant 9.7% increase in its shares after surpassing quarterly profit and revenue estimates. In contrast, specialty chemicals company Celanese faced a steep 21.5% drop following a quarterly loss. Other notable movements included Shift4's 17.5% decline after its fourth-quarter results and plans to acquire Global Blue, whose shares surged by 17.5%. Meanwhile, electric truck manufacturer Nikola faced a dramatic fall of over 39% after filing for Chapter 11 bankruptcy protection.