US stocks climbed to fresh record highs as Wall Street brushed aside concerns over a weaker dollar.
The S&P 500 pushed above the 7,000 mark for the first time, as Wall Street shrugged off concerns over a weaker dollar. The Dow Jones Industrial Average rose 0.2% to 49,086.29, while the tech-heavy Nasdaq Composite gained 0.6% to 23,956.99.
Attention now turns to the Federal Reserve, which is widely expected to leave interest rates unchanged following three cuts last year, despite sustained pressure from US President Donald Trump for lower borrowing costs.
The rate cuts in 2025 were aimed at supporting economic growth and preventing a sharper deterioration in the labour market after hiring slowed in the wake of Trump’s sweeping tariffs. More recent data, however, suggest unemployment has stabilised, and economic momentum may be improving, even as inflation remains stubbornly above the Fed’s 2% target.
A key focus of Chair Jerome Powell’s press conference on Wednesday is expected to be how long the Fed intends to remain on hold, a stance that could have significant implications for the dollar.
Policymakers remain divided, with some officials unwilling to back further rate cuts until inflation eases more convincingly, while others favour additional easing to further support employment. In December, only 12 of the 19 members of the rate-setting committee projected at least one additional cut this year.
Most economists continue to expect two rate cuts in 2026, with the first move most likely coming at the June meeting or later in the year.
