U.S. stocks closed lower on Thursday after the Federal Reserve’s latest meeting minutes signaled a more hawkish stance on interest rates than investors had anticipated. The S&P 500 declined 0.3% to 6,862.16, while the Nasdaq Composite dropped 0.3% to 22,682.73. The Dow Jones Industrial Average fell 0.5% to 49,395.16. The pullback followed Wednesday’s rally, when technology stocks and AI leader Nvidia helped offset concerns about tighter monetary policy.
The Fed’s January minutes revealed that nearly all Federal Open Market Committee members supported holding rates steady. However, policymakers appeared divided over the future path of monetary policy. Several officials indicated they would consider rate hikes if inflation remains above the central bank’s 2% target. The discussion reinforced expectations that the Federal Reserve is in no hurry to implement additional rate cuts. Artificial intelligence was also highlighted as a source of uncertainty, with debate over whether rapid AI growth could fuel or dampen inflation pressures.
Economic data released Thursday offered mixed signals. The U.S. trade deficit widened to $70.3 billion in December, pushing the 2025 deficit to $901.5 billion. Meanwhile, weekly jobless claims fell to 206,000, below forecasts of 223,000, suggesting the labor market remains resilient. Investors are now focused on Friday’s key reports, including the Personal Consumption Expenditures price index— the Fed’s preferred inflation gauge— and a preliminary estimate of fourth-quarter GDP growth, both of which could influence interest rate expectations and stock market direction.
Walmart shares dropped 1.4% despite beating quarterly earnings estimates and announcing a $30 billion share buyback. The retailer issued conservative profit guidance for the upcoming quarter and fiscal 2027, marking its first report under new CEO John Furner.
In commodities, oil prices surged to their highest levels in over six months. Brent crude rose 2.2% to $71.91 per barrel, and West Texas Intermediate gained 2.5% to $66.66, supported by Middle East tensions and declining U.S. crude inventories.


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