Catenaa, Thursday, February 20, 2025 – US stocks closed at a record high on Wednesday, with the S&P 500 reaching its third record close of the year, as minutes from the Federal Reserve meeting in January stressed officials would stay till inflation improves for further rate cuts.
Many stocks had opened lower after Trump said he was considering 25% or more tariffs on automobiles, semiconductors and medicines.
But by midafternoon, the major indexes overcame those earlier losses. The S&P 500 gained 14.47 points or 0.24%, finishing at a new record close—its third of 2025. The Dow Jones Industrial Average increased by 71.25 points or 0.16%%, and the Nasdaq Composite climbed by 14.99 points or 0.07%.
Among the 11 major sectors of the S&P 500, healthcare enjoyed the largest percentage gain, while materials and financials were the laggards
Minutes show that Federal Reserve officials in January agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact Trump’s tariffs would have in making that happen.
Policymakers on the Federal Open Market Committee unanimously decided at the meeting to hold their key policy rate steady after three consecutive cuts totalling a full percentage point in 2024.
In reaching the decision, members commented on the potential impacts of the new Trump administration, including chatter about the tariffs as well as the impact of reduced regulations and taxes.
The committee noted that the current policy is “significantly less restrictive” than it had been before the rate cuts, giving members time to evaluate conditions before making any additional moves.
Shortly after taking office, Trump’s threat to impose levies on Mexico and Canada rattled markets. But in recent weeks traders have been inclined to view tariff talk as more of a negotiating tactic.
