US Stocks Remain Muted After FOMC Minutes

On Tuesday afternoon, U.S. stocks maintained a subdued trajectory, poised to end the year close to recent peaks as markets balanced expectations of strong economic growth and potential interest rate cuts from the Federal Reserve against apprehensions about inflated valuations of AI companies. The S&P 500, Nasdaq 100, and Dow Jones Industrial Average mostly hovered around the flatline. The minutes from the latest Federal Reserve meeting revealed a divided FOMC, grappling with the challenge of balancing high inflation against unemployment concerns for the coming year. Nonetheless, there was a general consensus that room remains for further rate reductions. Meanwhile, volatility affected mining stocks as supply worries and speculative investments pushed copper and silver futures towards record highs, benefiting companies like Freeport-McMoRan. Additionally, tech giants experienced slight declines as investors continued to evaluate the future returns from AI and datacenter investments, easing fears of a potential bubble within the sector.