S&P 500 Hits Record as Traders Brush Off Fed Signs: Markets Wrap

(Bloomberg) — Stocks closed at all-time highs as traders looked past signals the Federal Reserve is in no rush to cut interest rates.

Just as in the previous session, equities gained traction in the final stretch of trading. That was after the Fed minutes only reiterated the cautious stance by US policymakers amid economic strength and stubborn inflation. Treasuries advanced as officials also discussed pausing or slowing the balance-sheet runoff until the debt-ceiling drama is resolved.

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“They will sit and wait before cutting again,” said Peter Boockvar, author of The Boock Report. “I say ‘cut’ because it still seems like they have an easing bias. The Fed also commented on the balance sheet. This could also be a reason why yields dipped a bit.” 

The S&P 500 rose 0.2%. The Nasdaq 100 wavered. The Dow Jones Industrial Average added 0.2%

In a sign of caution, defensive industries outperformed. Quantum-computing shares jumped on Microsoft Corp.’s new chip. Homebuilders sank after results from Toll Brothers Inc. and key construction data indicated the residential real estate market may be in store for more turbulence. 

The yield on 10-year Treasuries declined two basis points to 4.53%. The Bloomberg Dollar Spot Index rose 0.2%.

Corporate Highlights:

• Apple Inc. introduced a new low-end smartphone called the iPhone 16e priced at $599, aiming to revive growth after a sluggish holiday season.
• Nikola Corp. filed for bankruptcy, culminating a long decline for the onetime darling of the electric-vehicle industry, which grappled with weak sales and cycled through CEOs in the wake of a fraud scandal.
• Carvana Co. expects retail vehicle sales and earnings to continue growing this year after reporting a record fourth quarter that easily beat Wall Street forecasts.
• SolarEdge Technologies Inc. surpassed sales forecasts, triggering an apparent short-covering rally.
• Elliott Investment Management is seeking seats on the board of oil refiner Phillips 66, the latest effort in a multi-year campaign pushing the company to sell assets, improve operational performance and bolster board oversight.
• Hims & Hers Health Inc. is expanding beyond its successful foray into providing copycat weight-loss drugs with the acquisition of a home blood-testing company.
• Roper Technologies Inc. is exploring a sale of its Neptune Technology Group division, according to people with knowledge of the matter.

Key events this week:

• China loan prime rates, Thursday
• Eurozone consumer confidence, Thursday
• US initial jobless claims, Philadelphia Fed manufacturing index, Thursday
• Fed’s Austan Goolsbee and Alberto Musalem speak, Thursday
• Eurozone HCOB manufacturing & services PMI, Friday
• US S&P Global manufacturing & services PMI, existing home sales, consumer sentiment, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 4 p.m. New York time
• The Nasdaq 100 was little changed
• The Dow Jones Industrial Average rose 0.2%
• The MSCI World Index fell 0.1%
• Bloomberg Magnificent 7 Total Return Index rose 0.2%
• The Russell 2000 Index fell 0.3%
• S&P Composite 1500 Homebuilding (Sub-Industry) fell 1.8%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.2% to $1.0424
• The British pound fell 0.2% to $1.2586
• The Japanese yen rose 0.4% to 151.49 per dollar

Cryptocurrencies

• Bitcoin rose 1.2% to $96,128.59
• Ether rose 2.6% to $2,720.07

Bonds

• The yield on 10-year Treasuries declined two basis points to 4.53%
• Germany’s 10-year yield advanced six basis points to 2.56%
• Britain’s 10-year yield advanced five basis points to 4.61%

Commodities

• West Texas Intermediate crude rose 0.6% to $72.30 a barrel
• Spot gold was unchanged at $2,936.02 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao, Sagarika Jaisinghani and Winnie Hsu.

©2025 Bloomberg L.P.