The S&P 500 reached a new record high on Wednesday, closing at 6,144.15 after rising 0.24%. This marks the second consecutive record close for the index, hitting an all-time high during the trading session. The Nasdaq Composite edged up 0.07% to close at 20,056.25, while the Dow Jones Industrial Average gained 71 points, or 0.16%, to end at 44,627.59.
Apple’s stock surged nearly 10% following better-than-expected quarterly results. However, investors remained cautious as President Trump discussed potential tariffs on imported autos, chips, and pharmaceuticals, which could be implemented as early as April 2. Jim Elios, founder and chief investment officer at Elios Financial Group, commented, “It’s the Trump effect with headlines weighing on markets and causing some pain. In the long term, I’m still really bullish about how this can become a pro-business environment.”
Investors also analyzed the Federal Reserve’s latest minutes, which indicated that central bank officials want to see more progress on inflation before cutting interest rates further. The minutes also revealed concerns about the impact of Trump’s tariffs on the economy. In other market movements, Palantir shares fell as much as 12.9%, its largest loss since May 2024, following reports that the Trump Administration is ordering senior Pentagon officials to develop plans for an 8% defense budget cut over the next five years.
S&P 500 sets new closing milestone
Despite the decline, Palantir remains 48% higher in 2025 after impressive gains in the previous two years. Walmart received a boost as Morgan Stanley raised its ‘bull case’ price target for its shares to $153, expecting growth in alternative businesses such as Walmart+ memberships, third-party e-commerce, automation efforts, and retail advertising.
Analysts are optimistic about Nike’s partnership with Kim Kardashian’s Skims brand, believing the collaboration can attract a younger, fashion-oriented female audience to the sportswear giant. Microsoft unveiled its first quantum computing chip, Majorana 1, marking a significant step towards making quantum computers capable of solving industrial-scale problems. The news caused a rally in quantum stocks, with shares of several key players surging.
Apple introduced its iPhone 16e, which will retail for $599 and go on sale later this month. The new model boasts capabilities sufficient for running artificial intelligence technology. President Trump has shown interest in striking a new trade deal with China amidst ongoing trade tensions and tariff threats impacting various sectors.
Investors continue to monitor these developments closely due to their potential impact on market movements.
