- The S&P 500 reached new all-time highs, driven by a late-session rally in chipmakers, while the Dow Jones Industrial Average showed mixed movements.
- President Trump has proposed new tariffs, potentially targeting the Pharmaceuticals and Automobiles sectors with a 25% tariff rate.
- The Federal Open Market Committee (FOMC) minutes and S&P PMI data releases are upcoming and expected to provide further insights into the Fed’s monetary policy stance.
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The three major Wall Street indices fluctuated throughout the US session, shifting between gains and losses. A rise in chipmakers propelled the S&P 500 to fresh all-time highs late in the session despite a drop in technology stocks.
The S&P 500 edged up by 0.2%, while the Nasdaq 100 also posted a 0.2% gain. The Dow Jones Industrial Average showed mixed movements throughout the session. Meanwhile, the chipmakers index surged by 1.7%.
SPX 500 Top Movers
Source: TradingView
Intel’s stock climbed on rumors about a possible company breakup. Super Micro Computer saw a big jump thanks to a positive outlook. Walgreens Boots Alliance rose after CNBC reported that Sycamore Partners might still be planning a takeover. Meanwhile, Meta’s 20-day streak of gains came to an end.
More Tariffs Ahead?
Yesterday we heard more from President Trump on proposed tariffs that may be announced. President Trump said we should see some announcements in the coming week while once again lamenting that the EU has been an unfair trading partner.
The President touched on specific sectors with Pharmaceuticals and Automobiles both expected to get hit with tariffs of around 25%. Tuesday’s comments are his most detailed yet in specifying other sectors that would be hit with fresh barriers.
It will be interesting to see what effect such announcements may have on stock prices moving forward following what has been quite an impressive earning season for US companies.
FOMC Minute and PMI Data Ahead
It is fair to say that following last week’s uptick in US inflation and drop off in retail sales numbers, market participants are once more focused on the Fed’s next moves. The FOMC minutes will be released later today, these should provide further insights into how the Fed sees tariffs impacting their monetary policy course and objectives moving forward.
The week will wrap up with S&P PMI data which will give us another glimpse into the performance of the US economy from both a manufacturing and service perspective.
For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)
Technical Analysis
S&P 500
From a technical standpoint, the S&P has printed a fresh all-time high and could be due a pullback soon.
There was a triangle breakout which occurred as far back as September 19, with a target price of around 6170 which is now just 40 points away.
If we reach this level i do think we could be in for a short-term correction, however, i expect such a move to be met with buying pressure if the current status quo remains the same.
It is hard t find key levels as we continue to trade at fresh highs with no historical price action to serve as a guide.
However, immediate focus for me will be 6170 and 6200 on the upside.
If price pushes lower from here, support may be found at 6100, 6080 (20-day MA).
S&P 500 Daily Chart, February 19, 2025
Source: TradingView (click to enlarge)
Support
Resistance
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