Fed Minutes & Issuer Performance Pressure US Stocks
Wall Street closed lower on Thursday (February 19th), after the Federal Reserve's (Fed) meeting minutes signaled a policy trend that was tighter than market expectations. Pressure also came from investor reactions to the performance of retail companies, including Walmart, which ended lower after releasing its first quarterly report under a new CEO.
At the close, the S&P 500 fell 0.3% to 6,862.16, the Nasdaq Composite weakened 0.3% to 22,682.73, and the Dow Jones Industrial Average fell 0.5% to 49,395.16. This decline erased some of the previous session's rally, when technology stocks rebounded and Nvidia was a key supporter.
The minutes of the Fed's January monetary policy meeting showed that nearly all FOMC members agreed to maintain interest rates at their current levels. However, the document highlighted differing views within the central bank regarding the next steps, particularly regarding inflation risks.
Several policymakers are said to still be open to additional tightening if inflation remains above the 2% target. Risks from the development of artificial intelligence (AI) are also a source of uncertainty, as officials are divided over whether AI will suppress inflation through productivity or instead trigger price pressures through market dynamics and investment.
On the data front, the market is digesting a series of US economic releases. The US goods and services trade deficit reportedly widened to $70.3 billion in December. For 2025, the trade deficit is expected to widen to $901.5 billion.
Meanwhile, labor market indicators are signaling stronger-than-expected growth. The US Department of Labor reported that weekly initial jobless claims fell to 206,000, below expectations of 223,000—supporting the view that labor market conditions remain relatively solid despite high interest rates.
Source: Newsmaker.id
