Stocks rise with lower 10-year T-note yield, FOMC indicates rate-cut pause.

From Nasdaq: 2025-02-19 19:50:40

The S&P 500, Dow Jones, and Nasdaq closed higher on Wednesday. E-mini S&P futures rose while Nasdaq futures fell. The FOMC minutes indicated a rate-cut pause but discussed halting balance sheet reduction due to debt ceiling concerns.

Goldman Sachs estimates a debt ceiling breach by late Q2 or Q3 2025, risking default on Treasury obligations. FOMC minutes from Jan 28-29 meeting suggest a rate-cut pause until inflation improves.

President Trump’s tariff threats on US auto, semiconductor, and pharmaceutical imports led to early stock market losses. Housing starts fell in Jan, but building permits rose slightly.

ECB hints at pausing rate cuts, while the market predicts a -25 bp rate cut at the March 6 policy meeting. US stock movers saw Analog Devices rally, while Intel fell after a surge.

Interest rates fluctuated, with T-notes rising initially but recovering later. European government bond yields moved higher on Wednesday.

US stock movers included gains in chip stocks like NXP Semiconductors and Microchip Technology, while Intel and Meta Platforms experienced losses. Palantir Technologies fell on defense spending concerns.

Toll Brothers and other homebuilders saw declines after negative results. Etsy fell after a sales miss. Earnings reports for various companies were released on 2/20/2025.



Read more at Nasdaq: Stocks Close Mildly Higher as 10-year T-note Yield Edges Lower