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US STOCKS-Wall Street slips as Fed policy eyed
Feb 18, 2025 12:11 PM

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Constellation Brands ( STZ ) jumps after Berkshire discloses stake

*

Intel ( INTC ) up after report Broadcom ( AVGO ), TSMC eye deals to split it

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Fed's January meeting minutes due on Wednesday

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Indexes down: Dow 0.36%, S&P 500 0.14%, Nasdaq 0.45%

(Updates to mid-afternoon)

By Stephen Culp

NEW YORK, Feb 18 (Reuters) - Wall Street dipped on

Tuesday as investors showed little conviction at the top of a

holiday-shortened week with earnings season winding down and

geopolitical and trade uncertainties holding risk appetite in

check.

The three major stock indexes wobbled between red and green

for much of the session, but slipped into negative territory in

the afternoon, weighed down by Meta Platforms ( META ),

Amazon.com ( AMZN ) and Alphabet.

"We're seeing a little bit of a lull in the market," said

Chuck Carlson, chief executive officer at Horizon Investment

Services in Hammond, Indiana. "There aren't a whole lot of

catalysts right now that can drive the market one way or the

other, and because of that, you kind of get days like this."

"Investors are playing it pretty close to the vest today,"

Carlson added.

On Wednesday, the U.S. Federal Reserve is expected to

release the minutes of its January policy meeting, at which the

voting members elected to let interest rates stand amid signs of

an inflation rebound and the unknown extent and effects of

President Trump's threatened tariffs.

Remarks from U.S. Federal Reserve policymakers largely

adhered to the same script, with Philadelphia Fed President

Patrick Harker, Governors Michelle Bowman and Christopher Waller

saying they believe economic strength and elevated inflation

warrant holding the policy rate steady for the time being.

San Francisco Fed President Mary Daly reiterated that a

pause in rate cuts is appropriate until more visible progress is

made toward bringing inflation down to the Fed's 2% goal.

The minutes will be scrutinized for clues regarding the

central bank's path forward, particularly in light of recent

data, which shows price growth gaining momentum, falling

consumer sentiment and weaker-than-expected retail sales.

"The Fed is being reasonably transparent here," Carlson

said. "There's been evidence that the economy is slowing down a

little bit and I'm sure they're watching that. But I don't think

they feel significant pressure, at least at this point, to drop

rates anytime soon."

The Dow Jones Industrial Average fell 159.02 points,

or 0.36%, to 44,387.06, the S&P 500 lost 8.67 points, or

0.14%, to 6,105.96 and the Nasdaq Composite lost 90.44

points, or 0.45%, to 19,936.34.

Fourth-quarter earnings season has come around the final

bend, with 383 companies in the S&P 500 having reported as of

Friday. Of those, 74% have posted better-than-expected results,

according to LSEG data.

Analysts currently see fourth-quarter S&P 500 earnings

growth of 15.3% year-on-year, up from the 9.6% estimate as it

stood on Jan. 1.

Intel ( INTC ) advanced 10.7% after a report over the

weekend said rivals Taiwan Semiconductor Manufacturing Co. ( TSM )

and Broadcom ( AVGO ) were considering potential deals

that could split the chipmaker in two.

The move gave a boost to the Philadelphia SE semiconductor

index, which gained 1.4%.

Constellation Brands ( STZ ) jumped 4.6% after Warren

Buffett's Berkshire Hathaway ( BRK/A ) disclosed a new investment

in the company on Friday.

Meta Platforms ( META ) was off 3.7%, on course to snap its

20-session winning streak.

Advancing issues outnumbered decliners by a 1.25-to-1 ratio

on the NYSE. There were 229 new highs and 73 new lows on the

NYSE.

On the Nasdaq, 2,117 stocks rose and 2,251 fell as declining

issues outnumbered advancers by a 1.06-to-1 ratio.

The S&P 500 posted 25 new 52-week highs and 11 new lows

while the Nasdaq Composite recorded 117 new highs and 94 new

lows.

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