Tech Rebounds: Markets React Amid Trade and Fed Speculations

The S&P 500 and Nasdaq rose as tech stocks surged, with investors weighing Trump’s tariff threats and Federal Reserve minutes. Federal minutes revealed indecisiveness on rate cuts while Trump proposed tariffs on Canadian, Mexican, and Chinese imports, unsettling automakers. The Dow rose slightly, driven by Microsoft and Apple gains.

The S&P 500 and Nasdaq ended Tuesday on a high note, bolstered by a recovery in technology stocks. Meanwhile, investors were keenly evaluating President-elect Donald Trump's tariff promises, particularly against prime trade partners, alongside the most recent Federal Reserve minutes.

The Fed's minutes, revealing a lack of consensus on future interest rate cuts, did little to alter rates for some analysts. This fueled speculation that U.S. interest rates could see further reductions next week and into the next year, even as employment and inflation data loom as pivotal factors.

Trump's announcement of potential tariffs on Canadian and Mexican exports, along with a steep tariff increase on Chinese imports, sparked concerns about supply chain disruptions, notably in the automotive sector. Despite these tensions, significant gains by tech giants Microsoft and Apple propelled the Nasdaq, while the Dow experienced a moderate increase.

(With inputs from agencies.)