Stocks moved modestly lower early in the session on Wednesday but regained ground over the course of the trading day. The major averages climbed well off their early lows and into positive territory, with the S&P 500 once again reaching a new record closing high.
The major averages ended the day modestly higher. The S&P 500 (SPI:SP500) rose 14.57 points or 0.2 percent to 6,144.15, the Dow climbed 71.25 points or 0.2 percent to 44,627.59 and the Nasdaq inched up 14.99 points or 0.1 percent to 20,056.25.
The strength that emerged on Wall Street came as traders shrugged off early concerns about a global trade war even as President Donald Trump said he plans to impose tariffs on U.S. imports of automobiles, pharmaceuticals and semiconductors.
Trump said the 25 percent tariffs could be imposed as early as April 2nd and warned the duties could “go substantially higher over a course of a year.”
The rebound also came even though the minutes of the latest Federal Reserve meeting revealed officials want to see further progress on inflation before they consider resuming lowering interest rates.
The minutes of the Fed’s January 28-29 meeting also reiterated officials believe a “careful approach” in considering additional adjustments to the stance of monetary policy is appropriate given the high degree of uncertainty.
Factors mentioned by participants as supporting a “careful approach” included the reduced downside risks to the outlook for the labor market and economic activity and increased upside risks to the outlook for inflation, the Fed said.
Participants said the upside risks to the inflation outlook partly reflected the possible effects of potential changes in trade and immigration policy.
In U.S. economic news, the Commerce Department released a report showing housing starts pulled back by more than expected in the month of January.
Sector News
Computer hardware stocks extended the rally seen over the past several sessions, with the NYSE Arca Computer Hardware Index surging by 1.9 percent to a new record intraday high.
Significant strength also emerged among semiconductor stocks, as reflected by the 1.2 percent gain posted by the Philadelphia Semiconductor Index.
Healthcare stocks also showed a notable move to the upside, while weakness remained visible among housing and airline stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while China’s Shanghai Composite Index climbed by 0.8 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index tumbled by 1.8 percent, the French CAC 40 Index slumped by 1.2 percent and the U.K.’s FTSE 100 Index slid by 0.6 percent.
In the bond market, treasuries showed a lack of direction before ending the day roughly flat. The yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point at 4.535 percent.
Looking Ahead
Trading on Thursday may be impacted by reaction to reports on weekly jobless claims, Philadelphia-area manufacturing activity and leading economic indicators.
SOURCE: RTTNEWS