Stock Market Update

[BRIEFING.COM] The major averages mostly held their lines following the release of the FOMC minutes which revealed a split among participants over the timing of rate cuts, with a couple open to reducing the federal funds rate as early as the next meeting, while others favored holding steady through year-end due to persistent inflation risks. Some noted the current policy rate may already be near its neutral level.

Inflation was viewed as likely to face upward pressure from increased tariffs, though the impact's timing and magnitude remain uncertain.

Participants acknowledged moderating wage growth and some signs of labor market softness, though most still saw overall economic and job conditions as solid.

Several expressed concern that immigration restrictions and rising tariffs could weigh on labor supply and demand. Overall, the Committee signaled a patient stance, awaiting more data before adjusting policy, though most agreed that some easing this year could be appropriate if inflation trends downward and economic conditions soften.

Treasury yields are little changed following the minutes, the yield on the 10-yr down about 6.5 basis points at 4.346%.