NEW YORK, Feb. 18 (Xinhua) -- U.S. stocks remained little changed on Tuesday, but the S&P 500 managed to make a new record high thanks to strong buying at the end of session.
The Dow Jones Industrial Average rose 10.26 points, or 0.02 percent, to 44,556.34. The S&P 500 gained 14.95 points, or 0.24 percent, to 6,129.58, while the Nasdaq Composite added 14.49 points, or 0.07 percent, to 20,041.26.
Eight of the 11 primary S&P 500 sectors finished higher, led by energy and materials, which rose 1.37 percent and 1.23 percent, respectively. On the other hand, communication services and consumer discretionary stocks lagged, falling 1.26 percent and 0.52 percent, respectively.
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index came in at 42 in February on Tuesday, a five-point drop from January and the lowest level in five months. Freddie Mac data shows that the 30-year fixed mortgage rate remains near 7 percent, making homeownership less affordable for many buyers.
While traders took a Presidents' Day break, Fed Governor Michelle Bowman stated on Monday that she needs greater confidence in further inflation declines before supporting additional rate cuts this year. The benchmark interest rate "is now in a good place, allowing the committee to be patient and pay closer attention to the inflation data as it evolves," she said.
The Fed cut interest rates by one percentage point in the final months of 2024 before keeping them unchanged at their January policy meeting. That decision appeared justified after fresh data showed the consumer price index (CPI) climbed 0.5 percent in January, marking the largest increase since August 2023.
Steve Wyett, chief investment strategist at BOK Financial, also suggested that the Fed could reverse course next year if inflation proves to be a longer-term challenge. "I think there's a not-zero chance that the Fed course next year as inflation becomes a 2026 story," he said. "That's not being reflected in asset values at the present time. I'm more optimistic than I am pessimistic, but I think we also need to be realistic."
"If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate," Fed Governor Christopher Waller said in remarks he's scheduled to deliver on Tuesday in Sydney. "But until that is clear, I favor holding the policy rate steady."
From year to year, the S&P 500 has delivered a 23 percent return for investors in 2024 and 24 percent in 2023. If the index continues this streak, it would mark only the second time since 1928 that U.S. stocks have posted three consecutive years of total returns above 20 percent, according to Scott Wren of Wells Fargo Investment Institute. However, 2025 may not offer a "three-peat". "Do we expect an S&P 500 Index three-peat in 2025? In short, no," Wren wrote in a market commentary.
