The Federal Reserve’s latest meeting minutes from January have suggested that the central bank will refrain from making further policy changes unless there is clear evidence of inflation improving. The market responded strongly to this signal, driving U.S. stock indices higher on Wednesday after a weak open. The S&P 500 rose by 0.24%, marking its second consecutive record high; the Dow Jones Industrial Average climbed 0.16%, while the Nasdaq Composite inched up by 0.07%. Although the performance of major tech stocks was mixed, Tesla saw a solid gain of 1.82%, while Nvidia dipped slightly by 0.12%.
Against the backdrop of the U.S. stock market’s recovery, the cryptocurrency market showed signs of a rebound. Bitcoin, after a sharp plunge on Tuesday that hit a two-week low, exhibited a steady upward movement on Wednesday, briefly surging to $97,000 before pulling back. The digital currency is currently trading at $96,810, reflecting a 1.5% increase over the past 24 hours. Ethereum and various altcoins also experienced a notable recovery, with Ethereum rising around 2.02% to reach $2,730. Despite a slowdown in on-chain activity and a noticeable decline in the popularity of meme coins, Solana continues to underperform. Overall, the market remains caught in a sideways trading pattern, with no clear breakout in sight.
In the foreign exchange and commodities markets, the U.S. dollar index gained 0.11%. Gold prices hit an all-time high of $2,947 during intraday trading before retreating slightly, narrowing its gains to 0.15%. Meanwhile, oil prices extended their upward momentum, fueled by growing concerns about supply constraints. Brent crude oil surged for the third consecutive day, reaching its highest level in a week.
The Federal Reserve’s meeting minutes revealed that officials are cautious about cutting interest rates further. They emphasized the need for inflation to show sustained downward movement before any additional rate cuts are considered. Moreover, factors such as the Trump-era tariffs remain a potential source of upward pressure on inflation. Overall, these minutes have reinforced market expectations that the Fed is likely to pause its rate cuts for the time being, as it takes a “wait-and-see” approach while it monitors incoming economic data before making any new decisions.