The S&P 500 reached a new record high on Wednesday. This was despite concerns about potential new tariffs from President Trump. The index rose 0.24% to close at 6,144.15.
The Nasdaq Composite gained 0.07% to end at 20,056.25. The Dow Jones Industrial Average advanced 71 points, or 0.16%, to finish at 44,627.59. Investors seemed to brush off the possibility of new tariffs on imported autos, chips, and pharmaceuticals.
These could be implemented as early as April 2. Jim Elios, founder and chief investment officer at Elios Financial Group, said, “I think there’s a lot of noise tied to tariffs in the short-term, which is what you’re seeing today. In the long term, I’m still really bullish about how this can become a pro-business environment.”
The Federal Reserve’s latest minutes also garnered attention.
They showed that central bank officials want to see more progress on inflation before cutting interest rates further. The officials also expressed concern about the effect of Trump’s tariffs. Palantir shares experienced a significant drop, falling as much as 12.9%.
This marked the company’s largest loss since May 2024. The decline followed news that the Trump Administration and Defense Secretary Pete Hegseth are ordering senior Pentagon officials to develop plans for cutting 8% from the defense budget over the next five years. Despite this setback, Palantir remains 48% higher in 2025 after substantial gains in previous years.
s&p 500 reaches new peak
Morgan Stanley raised its ‘bull case’ price target for Walmart ahead of the company’s earnings report. The firm now sets the target at $153 per share.
Morgan Stanley’s optimism stems from Walmart’s alternative businesses, such as Walmart+ memberships and third-party e-commerce ventures. Analysts expect these to drive revenue and earnings growth over the next three years. Analysts also expressed enthusiasm about Nike’s new partnership with Kim Kardashian’s Skims brand.
The NikeSKIMS line will launch this spring and is expected to attract a younger and more fashion-oriented customer base. Cristina Fernández, senior research analyst at Telsey Advisory Group, said, “The association with Kim Kardashian can bring buzz to Nike.”
Microsoft unveiled its first quantum computing chip, Majorana 1, on Wednesday. This announcement comes after nearly two decades of research.
Quantum computers have the theoretical capability to solve highly complex problems. They could significantly advance fields like artificial intelligence and drug discovery. The announcement led to a rally in quantum stocks, with companies like IonQ and Rigetti Computing seeing significant gains.
Apple announced the iPhone 16e, which will retail for $599 and go on sale later this month. The new iPhone model will be powerful enough to run artificial intelligence technology. In summary, the market appears to be bullish despite the noise surrounding tariffs and defense budget cuts.
Instead, investors are focusing on technological advancements and strategic business partnerships.
