Market Roundup: What Happened Yesterday and What Awaits Us Today (February 19)

Stocks rise cautiously after the Fed minutes… Oil jumps and gold regains its luster amid inflation concerns

U.S. equities finished Wednesday in positive territory, although gains faded toward the close as investors adopted a more cautious stance following the release of minutes from the Federal Reserve’s January meeting. The document revealed notable differences among policymakers regarding the future direction of interest rates, adding a layer of uncertainty to markets already sensitive to inflation and labour data.

The tech-heavy Nasdaq Composite led the advance with a 0.8% gain, while the S&P 500 rose 0.6% and the Dow Jones Industrial Average added roughly 0.3%. The session followed a volatile Tuesday, when renewed concerns about technology stock valuations triggered sharp intraday swings.

Fed minutes showed policymakers divided on next steps. Some officials indicated they remain open to further rate hikes if inflation proves persistent, while others favour eventual easing to support economic activity. The committee ultimately voted in January to hold rates steady for the first time since July.

Recent economic data has complicated the outlook. Stronger-than-expected inflation and jobs figures last week reduced expectations for near-term rate cuts, while investors now await Friday’s release of the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge.

Technology stocks regained some momentum. Nvidia rose 1.6% after Meta announced plans to purchase millions of chips to expand its data centre infrastructure. Other AI-linked semiconductor firms, including Micron Technology and Western Digital, also advanced, while Meta itself gained 0.6%.

Among the other major tech names, Amazon climbed about 2% despite Berkshire Hathaway reducing its stake. Apple, Alphabet, Microsoft, and Tesla posted modest gains.

Corporate earnings news produced mixed reactions. Palo Alto Networks dropped 7% after issuing weaker-than-expected guidance, while Cadence Design Systems surged 8% and Analog Devices rose 3% after beating revenue and profit forecasts.

In fixed income markets, the yield on the benchmark 10-year U.S. Treasury note edged up to 4.08% from 4.06%, underscoring continued sensitivity to shifting rate expectations.

Energy markets were stronger, with West Texas Intermediate crude jumping about 4.5% to $65.10 a barrel following comments from U.S. Vice President J.D. Vance expressing scepticism about progress in diplomatic talks with Iran.

Precious metals rebounded as well. Gold rose 1.8% to $4,995 an ounce, while silver climbed 4.9% to $77.10.

In contrast, Bitcoin slipped to around $66,300 after briefly trading above $68,000 overnight. The U.S. dollar index strengthened 0.6% to 97.70.

Market Outlook

Looking ahead, markets are likely to remain highly data-dependent. Upcoming inflation readings — particularly the PCE index — could significantly influence expectations for interest rate policy in the coming months.

Stronger inflation data could push bond yields higher, support the dollar, and pressure growth-oriented equities, especially technology stocks. Conversely, signs of cooling inflation may revive expectations of rate cuts, potentially supporting equities, commodities, and broader risk appetite.

As always, traders will be watching both macro data and central bank signals closely, as policy expectations remain the dominant driver of market sentiment.