The S&P 500 posted a modest gain on Wednesday as traders assessed the potential for future Federal Reserve rate cuts amid persistent inflationary pressures.
The broad market index added 0.16%, closing at 5,918.25, while the Nasdaq Composite slipped 0.06% to 19,478.88. The Dow Jones Industrial Average outperformed, rising 106.84 points, or 0.25%, to end at 42,635.20. The three major averages are on pace for a second straight weekly loss.
Minutes released from the Fed’s December meeting reflected that nearly all committee participants found that upside risks to the inflation outlook had increased, adding to investors’ concerns that there may be fewer rate cuts than expected this year.
“In discussing the outlook for monetary policy, participants indicated that the Committee was at or near the point at which it would be appropriate to slow the pace of policy easing,” the minutes read.
Bond yields, which have been climbing on bets that President-elect Donald Trump’s tariff and tax plans could lead to a spike in inflation, wavered throughout Wednesday’s trading session. The rate on the benchmark 10-year Treasury note at one point topped 4.7%, nearing levels last seen in late April.
After digesting a slew of economic data this week, investors are now awaiting Friday’s December payrolls report.
“Forecasters find it increasingly difficult to model out the path for interest rates, growth, and inflation because of the uncertainty surrounding Trump policies still being developed,” Jeffrey Roach, chief economist for LPL Financial, said. “Markets could get choppy if there is a surprise in Friday’s payroll release.”
Palantir — one of the biggest gainers in the S&P 500 in 2024, rising more than 340% — was down for a third straight day, losing 2.5%. Chipmaker Advanced Micro Devices shed 4.3% after a downgrade by HSBC.
Source: https://www.cnbc.com/2025/01/07/stock-market-today-live-updates.html