The three major U.S. stock indexes finished mixed as the Federal Reserve held interest rates steady and investors waited for earnings from major Big Tech companies. Strength in technology and semiconductor shares pushed the S&P 500 above 7,000 for the first time intraday, though it later gave back gains.
On Tuesday, the Dow Jones Industrial Average rose 12.19 points, or 0.02%, to 49,015.60. The S&P 500 slipped 0.57 points, or 0.01%, to 6,978.03. The Nasdaq composite gained 40.35 points, or 0.17%, to 23,857.45, extending its winning streak to six sessions.
Stocks opened higher on semiconductor strength. The Philadelphia Semiconductor Index climbed more than 2%. Nvidia rose 1.59% after reports that Chinese authorities approved imports of its H200 artificial intelligence chip.
Microsoft rose 0.22%, Alphabet added 0.44%, Broadcom gained 0.14% and Tesla edged up 0.13%. Apple fell 0.71%, Amazon dropped 0.68% and Meta Platforms slipped 0.63%.
Seagate Technology surged more than 19% after reporting results that beat market expectations. Micron Technology jumped 6.10% as a memory-chip supply shortage persisted. Intel soared 11% on expectations that Nvidia and Apple could shift some orders to reduce reliance on Taiwan Semiconductor Manufacturing Co.
Jere Ellerbock, a manager at Argent Capital Management, told CNBC that the story in 2023, 2024 and much of 2025 centered on AI-related semiconductors, with demand “very strong,” while demand from autos, industrial and communications was broadly weak. “But now that’s changing,” he said, adding that demand across semiconductors is now far outpacing supply.
The Fed held its benchmark rate at 3.50% to 3.75%, pausing an easing cycle that included three cuts totaling 0.75 percentage points in September, October and December. In a statement, the Fed said available indicators suggest economic activity has been expanding at a solid pace, while job gains remain low, the unemployment rate shows signs of stabilizing, and inflation remains somewhat elevated.
After the close, Microsoft, Tesla and Meta reported fourth-quarter results. Microsoft and Meta beat expectations for both revenue and earnings per share. Market reaction was mixed: Microsoft fell more than 5% in after-hours trading, while Meta jumped more than 9%. Tesla beat EPS estimates, and its shares rose more than 3% after hours even as revenue posted its first annual decline on record.
CME Group’s FedWatch tool showed fed funds futures pricing in an 88.6% chance the Fed will hold rates steady in March. The Cboe Volatility Index was little changed at 16.35.
* This article has been translated by AI.
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