United States markets finished higher on Tuesday (Wednesday AEDT), supported by a rebound in technology stocks as investors monitored U.S. President-elect Donald Trump's tariff proposals and the latest Federal Reserve minutes.
The Dow Jones Industrial Average added 123.7 points or 0.3% to a fresh record close 44,860.3, the S&P 500 also notched record highs, up 34.3 points or 0.3% to 6,021.6, while the Nasdaq Composite gained 119.5 points or 0.6% to 19,174.3.
Tech giants Microsoft and Apple led gains in the information technology sector, lifting 2.2% and 0.9%, respectively. However, the Dow Jones Industrial Average lagged, weighed down by a decline in Amgen shares after its experimental obesity drug failed to meet expectations.
In the Federal Reserve's November meeting minutes, policymakers signalled gradual interest rate cuts as economic data remains robust. The minutes were cautiously optimistic, noting that, "if the data came in about as expected, with inflation continuing to move down sustainably to 2% and the economy remaining near maximum employment, it would likely be appropriate to move gradually toward a more neutral stance of policy over time.”
Overnight, Trump reiterated his trade policy stance, proposing a 25% tariff on Canadian and Mexican imports that could breach the revised trade agreement he negotiated during his previous term. He also suggested an "additional 10% tariff, above any additional tariffs" on Chinese imports, escalating fears of renewed trade tensions.
On the bond markets, 10-year and 2-year yields were at multi-week lows of 4.296% and 4.248%, respectively.
