The Fed is divided, but Wall Street is on the rise

Minutes from the January meeting of the Federal Open Market Committee showed that the US central bank's leadership is divided on the issue of further monetary easing. Still, New York stocks rose after several lackluster sessions in recent days.

The industrial average moved up 0.26% but remained below 50,000 points. The S&P500 increased by 0.56%, finishing with 6,881.31 points. The Nasdaq Coposite increased by 0.78%, reaching 22,753.31 points.

In the case of the S&P500 index, it was the best session since February 6, so for almost two weeks. America's most important stock market benchmark has gained only 0.5% since the beginning of 2026 and has been struggling unsuccessfully to break the 7,000-point barrier since January.

In turn, the Nasdaq Coposite is down by more than 2% YTD, and its last peak was in October. For comparison, many stock exchanges from Asia and Europe have recorded double-digit rates of return calculated since the beginning of AD 2026. The weakness of the American market, which has been so cherished in recent years, is therefore all too visible.

The January “minutes” from the Federal Reserve did not support the stock market either. Only a “couple” of policymakers supported further interest rate cuts in January. Opinions from other policymakers were divided, with “a few” open to RAISING rates if inflation remains elevated. The latter decreased in January from 2.7% to 2.4% and turned out to be slightly lower than the 2.5% expected by economists. However, this is still a reading above the Fed's 2 percent target.

– The technology sector has obviously been weighing on us since the beginning of the year. It's a nice change to see technology taking over the baton again, which it clearly dropped so far in 2026 – this is how Ryan Detrick, chief market strategist at Carson Group, commented on Wednesday's session, quoted by Reuters.

Wall Street grew despite increasing geopolitical tensions. This is not only about the failed peace talks in the Russia-Ukraine-USA triangle, but above all the escalation of tension in the Strait of Hormuz, through which almost every third barrel of crude oil transported by sea passes. Meanwhile, the United States is putting increasing military pressure on Iran, and Iran has no intention of folding.

K.K

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