The S&P 500 moved higher on Wednesday, supported by strength in major technology stocks as investors analyzed the latest minutes from the Federal Reserve policy meeting.
The benchmark index gained 0.56%, closing at 6,881.31. Meanwhile, the Nasdaq Composite advanced 0.78% to 22,753.63, driven largely by chipmakers and mega-cap tech stocks. The Dow Jones Industrial Average added 129.47 points, or 0.26%, finishing at 49,662.66.
Tech Stocks Provide Momentum
Shares of Nvidia rose 1.6% after Meta Platforms announced plans to deploy millions of Nvidia chips as part of its expanding data center infrastructure. The development further strengthened investor confidence in AI-driven demand.
Among the “Magnificent Seven,” Amazon climbed nearly 2% after filings showed Bill Ackman’s Pershing Square Capital Management increased its stake in the company by 65% in the fourth quarter. The move positions Amazon as the fund’s third-largest holding and follows the stock ending a nine-day losing streak.
Chipmaker Micron Technology surged more than 5% after David Tepper’s Appaloosa Management expanded its holdings in the company.
Industrial technology firm Trimble also advanced about 2%, highlighting broader participation beyond mega-cap names.
Market strategist Stephen Lee of Logan Capital Management noted that investors are becoming more selective, suggesting the market is showing signs of deeper stock-specific performance rather than relying solely on the largest tech players.
Fed Minutes Reveal Policy Division
Investors closely reviewed the January meeting minutes from the Federal Reserve, which showed policymakers largely agreed to maintain interest rates within a 3.5% to 3.75% range. However, officials appeared divided on the direction of future monetary policy, reflecting ongoing uncertainty around inflation and economic growth.
The lack of clear guidance on potential rate cuts continues to keep markets cautious, even as equities push higher.
Geopolitical Developments and Oil Prices
Oil prices moved higher as traders monitored tensions between the U.S. and Iran. Vice President JD Vance indicated that Iran had not addressed key U.S. concerns during recent nuclear discussions, adding that military options remain under consideration. The geopolitical backdrop contributed to gains in energy markets.
Other Market Movers
- La-Z-Boy shares fell 7% after issuing weaker-than-expected revenue guidance despite beating quarterly earnings estimates.
- The company projected revenue between $560 million and $580 million, below analyst expectations of approximately $590 million.
- Same-store sales declined 4%, reflecting ongoing pressure from cautious consumers.
Meanwhile, reports from The Wall Street Journal suggested that U.S. arms sales to Taiwan could face delays amid diplomatic developments involving Donald Trump and Chinese President Xi Jinping. Defense contractors including Lockheed Martin, RTX, and Boeing were mentioned in connection with potential arms packages.
Market Summary
Despite uncertainty surrounding interest rates and geopolitical tensions, U.S. equities ended the session in positive territory. Strength in semiconductor and mega-cap technology stocks continues to underpin broader market gains, while investors remain attentive to economic data and central bank signals.
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