U.S. Stocks End Wednesday in Green
The Dow Jones Industrial Average gained 129.47 points, or 0.26 percent, to finish at 49,662.66. The S&P 500 advanced 38.09 points, or 0.56 percent, to 6,881.31, while the Nasdaq Composite Index climbed 175.25 points, or 0.78 percent, to close at 22,753.63.
Eight of the 11 primary S&P 500 sectors ended the session in positive territory. Energy and consumer discretionary led all gainers, posting advances of 2 percent and 1 percent respectively, while utilities and real estate lagged, declining 1.7 percent and 1.45 percent.
On the macroeconomic front, the Federal Reserve reported Wednesday that U.S. manufacturing output expanded 0.6 percent last month — the sharpest monthly gain since February 2025. Separately, the U.S. Department of Commerce disclosed growth in both building permits and housing starts for December 2025, adding to a constructive economic backdrop.
Nvidia was among Wednesday's standout performers, surging 1.63 percent after Meta revealed a significant new deal to acquire millions of the chipmaker's processors for its artificial intelligence infrastructure. The announcement reinforced investor confidence in AI-driven demand and buoyed the broader technology sector.
Fellow large-cap technology names followed suit. Amazon advanced 1.81 percent even as Berkshire Hathaway disclosed the near-complete liquidation of its long-held stake in the e-commerce giant. Apple, Alphabet, Microsoft, and Meta each posted modest gains.
Momentum softened somewhat in afternoon trading after the Federal Reserve published minutes from its January policy meeting, revealing that policymakers remain sharply divided over the future direction of interest rates.
The minutes stated that "several participants commented that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation were to decline in line with their expectations."
Markets continue to price in two rate cuts for 2026, with consensus expectations for the next move centered around June. Investor focus now shifts to Friday's release of the December personal consumption expenditures price index — the Fed's preferred gauge of inflation — for fresh clues on the policy path ahead.
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