Stock market extends rally as Fed minutes show fissures on policy; Nasdaq marks longest win streak since August
U.S. stocks finished higher Wednesday after minutes from the Federal Reserve's January meeting showed central bankers were divided on raising rates further in 2019. The Dow Jones Industrial Average rose 63 points, or 0.2%, at 25,954, the S&P 500 index climbed 0.2% at 2,785, on a preliminary basis. Meanwhile, the technology-laden Nasdaq Composite Index finished little changed at 7,489, but enough to extend a rally to an eighth straight session, on a preliminary basis. The win streak marks the longest streak for the Nasdaq since Aug. 9, according to FactSet data. Meanwhile, the yield on the benchmark 10-year Treasury note traded at 2.652%, compared with 2.645% Tuesday. Bond yields rise as prices fall. The Fed's minutes from its Jan. 29-30 meeting, which were released at 2 p.m. Eastern Time, showed concerns about the global economy and fears that its efforts to reduce its $4 trillion-dollar balance sheet, known as quantitative tightening, or QT, would cause further disruptions in financial markets. On the trade front, President Donald Trump said Tuesday that the U.S. may not increase tariffs on Chinese goods as scheduled after March 1, but he did raise the specter of addressing auto tariffs in Europe, which briefly helped pushed stocks lower as minutes were being digested. Although, the Fed's more dovish stance has sparked optimism that stocks can continue to churn higher, questions persist about how long the Fed will maintain its newfound patient posture. Fed Vice Chairman Richard Clarida said Wednesday after minutes were released that he wasn't even sure the economy is slowing down. "So far, we have to admit that we don't have all the data we usually do right now. So its not even clear how much of a slowdown, if any, that we're seeing in the economy," Clarida said, in an interview on CNN International.
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