Tech Rebounds as Solid Data Offsets Hawkish Fed Minutes

Stocks advanced as investors balanced resilient economic data and a rebound in technology shares against a more cautious tone in the latest Federal Reserve minutes. Evidence of steady industrial production, firm business investment, and stronger housing activity reinforced the view that the economy remains on solid footing. Treasury yields edged higher for a second straight session, the dollar strengthened, and oil surged on geopolitical concerns, while equity gains were led by chipmakers and software after recent AI-driven volatility.

Key Headlines & Market Movers:

• Hawkish Fed Minutes Temper Rate-Cut Expectations: Minutes from the Fed’s January meeting showed several officials remain concerned that inflation could prove persistent, with some open to additional tightening if price pressures fail to ease. While policy was left unchanged, the tone suggests rate cuts are unlikely in the near term, reinforcing the market’s recent repricing toward higher-for-longer rates and contributing to modest upward pressure on Treasury yields.
• Tech Stabilizes as AI Fears Ease and Dip Buyers Step In: Semiconductor and software shares rebounded, with strength in Nvidia and other AI-linked names helping lift the broader market. Retail flows into beaten-down software stocks reached record levels on some trading platforms, signaling growing conviction that the recent selloff may have been overdone. Still, strategists caution that leadership may need to broaden beyond megacap tech for the rally to sustainably challenge the S&P 500’s resistance near 7,000.
• Commodities Jump on Geopolitics; IPO Window Cools: Oil prices climbed sharply amid renewed uncertainty around US-Iran tensions, while gold hovered near record levels as investors hedged geopolitical and inflation risks. Meanwhile, the anticipated IPO resurgence has shown signs of stalling, with several deals postponed amid market volatility and a seasonal slowdown, suggesting primary-market momentum may take longer to rebuild.

S&P 500 Sector Performance

Looking Ahead

Investors will focus on the upcoming release of the Fed’s preferred inflation gauge, which could further shape expectations for policy into the spring. Friday’s large options expiration may also amplify short-term volatility. The key themes remain the durability of economic growth, the path of inflation, and whether market leadership broadens beyond AI-heavy tech as positioning and sentiment continue to adjust.

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