Major United States averages finished higher on Wednesday (Thursday AEDT), with the S&P 500 refreshing record highs as investors looked past President Donald Trump’s renewed tariff threats and the Federal Reserve’s cautious stance on interest rates.
The Dow Jones Industrial Average gained 71.3 points or 0.2%, to close at 44,627.6, the S&P 500 rose 0.2% to 6,144.2, marking its second consecutive record close, while the Nasdaq Composite edged up 0.1% to 20,056.3.
Microsoft climbed 1.3%, boosting the broader technology sector after the company unveiled its first-ever quantum computing chip. Tesla also advanced 1.8%.
Meanwhile, Analog Devices surged 9.7% after posting better-than-expected quarterly earnings.
Trump reignited trade concerns on Tuesday by suggesting a 25% tariff on imported autos, semiconductors, and pharmaceuticals. While he did not specify whether the tariffs would be broadly applied or targeted, he indicated they could take effect as early as April 2.
Investors also assessed the latest Federal Reserve meeting minutes, which reinforced the central bank’s cautious stance. Officials reiterated the need for more progress on inflation before considering further rate cuts and noted concerns about the economic impact of Trump’s tariff policies.
On the data front, the Census Bureau reported Wednesday that building permits in January rose 0.1% from December to a seasonally adjusted annual rate of 1.483 million, slightly above 1.46 million expected but remaining 1.7% lower than a year earlier.
Meanwhile, housing starts fell 9.8% from the previous month to 1.366 million, slightly below forecasts of 1.4 million.
On the bond markets, 10-year and 2-year rates fell 0.4% and 0.7% to 4.535% and 4.274%, respectively.
