U.S. equity markets ended Tuesday on a positive note as investors digested the latest Federal Reserve meeting minutes and comments from President-elect Donald Trump regarding potential tariffs.
- Minutes from the Federal Open Market Committee (FOMC) meeting held on Nov. 6-7 revealed that most participants found the risks to inflation and employment to be balanced. The committee reiterated that a gradual approach to reducing interest rates was appropriate, while remaining prepared to adjust the pace based on economic data.
- On Monday evening, Trump threatened to impose a 25% tariff on imports from Mexico and Canada and an additional 10% tariff on Chinese goods, according to media reports. Scotiabank noted in a client update that the threat may be temporary and is not guaranteed, which could explain the relatively muted market reaction.
- In energy markets, January West Texas Intermediate crude settled $0.17 lower at $68.77 per barrel. Meanwhile, Brent crude for January delivery fell $0.31 to $72.70 as attention shifted to the upcoming OPEC+ meeting and potential impacts from Trump’s tariff plans.
- On the corporate front, J.M. Smucker (SJM) reported better-than-expected fiscal second-quarter earnings and raised its full-year guidance, sending its shares up 5.3%.
- In the semiconductor sector, Qualcomm (QCOM) appears to be scaling back its interest in acquiring Intel (INTC), citing complexities surrounding the potential deal, Bloomberg reported. Intel’s shares dropped 3.4%, while Qualcomm declined 1.3%.
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