The S&P 500 rose 0.6% to reach a new record high on Tuesday, with the Dow gaining 118 points. The Nasdaq also saw a 0.6% increase as markets continued to assess the potential impact of trade barriers following President-elect Donald Trump’s tariff threats, alongside the minutes from the FOMC's recent meeting.
S&P 500 and Dow close at fresh records
The minutes revealed the Fed’s cautious stance on rate cuts due to uncertainties in the economic outlook and concerns about persistent inflation. Market expectations are divided on whether the Fed will cut rates again in December. Meanwhile, Trump reaffirmed his plans to impose tariffs on Mexico, Canada, and additional barriers on China.
Tech stocks led the gains
Tech stocks led the gains, with Microsoft, Amazon, and Meta each rising more than 1.5%. In contrast, concerns over Trump's tariffs weighed on automakers, with Ford and General Motors dropping 2.7% and 9%, respectively. Constellation Brands, which owns Mexican beer brands like Corona and Modelo, fell 3.5%.
