Another Day, Another New Stock Market High

Stock markets are in no hurry to react to the realities of tariffs. On Wednesday, the S&P 500 (IVV) closed at a new record high. The Dow Jones also added around 0.1%. Markets are so bullish that it also ignored the Federal Reserve’s January meeting minutes.The Fed minutes indicated that members are content with a restrictive policy. It did not need to cut interest rates anytime soon, since the economy is still strong and inflation is still elevated. Consumers are all too aware that egg prices are under severe inflation, due to the Avian flu. Small items like that hurt consumer confidence.Food stocks like Kraft Heinz (KHC) and Mondelez (MDLZ) are on a downtrend. More recently, their share prices rebounded as investors bet that their sell-off is at an end. Investors may park their holdings in Costco (COST) and Walmart (WMT). Their businesses are resilient to inflationary pressures.In the technology sector, markets are holding Meta Platforms (META) and Amazon (AMZN). Both stocks outperformed the broader S&P 500 (SPY) index.Super Micro Computer (SMCI), the most beat-up server AI supplier, rebounded. Investors are no longer concerned about its de-listing risks. Nvidia (NVDA) reports results on Feb. 26. That may give the AI sector another boost.