Federal Reserve Minutes Release Impacts Markets

The S&P 500 index is experiencing a slight decline of 0.19% ahead of the Federal Reserve's release of minutes from its December meeting, where interest rates were cut by 25 basis points with caution about future cuts. Investors are bracing for the potential of only one additional rate cut in 2025, reflecting a shift in expectations due to a hawkish stance from the Fed. Amidst mixed economic signals, private payroll growth has slowed, raising concerns as jobless claims fall. Furthermore, speculation surrounding President-elect Donald Trump's potential use of the International Economic Emergency Powers Act to impose tariffs is creating market unease. Investors are keenly awaiting insights from the Fed's minutes, which could influence monetary policy outlook and U.S. dollar valuation. Major tech companies are also under scrutiny as they navigate a challenging trading environment.