Wall Street mixed ahead of Federal Reserve minutes

The benchmark S&P 500 and the Nasdaq have extended recent gains as technology stocks rebounded while investors parsed Donald Trump's tariff pledges on top trade partners and awaited minutes from the Federal Reserve's latest meeting. US president-elect Trump said he would impose a 25 per cent conditional tariff on Canadian and Mexican imports that could violate a free-trade deal he negotiated during his previous term. He also outlined "an additional 10 per cent tariff, above any additional tariffs" on imports from China, raising the risk of trade wars. Car makers such as Ford and General Motors - that have highly integrated supply chains across Mexico, the US and Canada - lost 2.8 per cent and 7.0 per cent respectively. However, some analysts said that the threats might just be used as a negotiating tool. "At this point it's probably too early to tell. But I don't think it's something that is over and I wouldn't be shocked if we turn the new year and all of a sudden this becomes a big issue," said Joe Saluzzi, co-head of equity trading at Themis Trading. In early trading on Tuesday, the Dow Jones Industrial Average fell 197.32 points, or 0.44 per cent, to 44,539.25, the S&P 500 gained 11.76 points, or 0.20 per cent, to 5,999.13 and the Nasdaq Composite gained 81.01 points, or 0.43 per cent, to 19,135.84. Gains in megacaps such as Nvidia, Microsoft and Apple boosted the information technology sector and also the tech-heavy Nasdaq. The blue-chip Dow was weighed down by declines in Amgen, which lost 11.5 per cent after its experimental obesity drug fell short of expectations. Yields on Treasury bonds, that had slipped in the previous session following Scott Bessent's selection as incoming Treasury secretary, rose and kept a lid on equities' gains. The S&P 500 touched a record high on Monday and logged its sixth-straight session of gains while the Russell 2000 also scaled an all-time high after three years. On the day, the small-cap index was down 0.4 per cent. Minutes from the US central bank's meeting earlier this month will be in focus on the day. Top on the radar this week is the personal consumption expenditure report due on Wednesday. Analysts say Trump's trade and fiscal policies, although seen as a positive for companies and economic growth, could stoke inflation pressures and slowdown the Fed's monetary policy easing cycle. Minneapolis Federal Reserve president Neel Kashkari, typically seen as hawkish on monetary policy, said he is open to cutting interest rates again next month. Traders have recently swayed in placing their bets on the central bank's move in December and currently favour a 25-basis point interest rate cut by a 56.2 per cent chance, as per the CME Group's FedWatch Tool. Among others, Eli Lilly rose 3.7 per cent after US President Joe Biden was set to propose expanding Medicare and Medicaid coverage for anti-obesity drugs. Best Buy lost 8.8 per cent and was among top decliners on the S&P 500 after trimming its annual profit and sales forecasts. Declining issues outnumbered advancers by a 2.12-to-1 ratio on the NYSE and by a 1.62-to-1 ratio on the Nasdaq. The S&P 500 posted 26 new 52-week highs and three new lows while the Nasdaq Composite recorded 45 new highs and 29 new lows.