The S&P 500 rose for the third day in a row. Investors are watching the Fed and the risks of war with Iran

Two of the three major U.S. stock indices - S&P 500 and Dow Jones - rose on February 18 for the third day in a row. U.S. stocks are recovering after two weeks of decline due to the growth of securities of key companies in the technology sector. At the same time, traders' sentiment was influenced by the publication of the minutes of the last meeting of the Federal Reserve System, as well as the risks of a military conflict between the United States and Iran.

- The S&P 500 broad market index rose 0.56% to close at 6881.3 points on Feb. 18. About 320 stocks from the S&P 500 index rose on Wednesday, Bloomberg notes. The index closed in the green zone for the third day in a row.

- The Nasdaq Composite Technology Sector Index added 0.78% on Wednesday, reaching 22,753.6 points.

- The blue-chip index Dow Jones Industrial Average rose by 0.26% and ended the day at 49,662.6 points. In the course of trading, the index went into the red zone for a while, but then managed to recover losses.

- The Russell 2000 index of small-cap stocks added 0.45% for the day, reaching 2658.6 points.

- Brent crude futures rose 4.1% to $70.2 on Wednesday, while WTI crude rose 4.44% to $65.1.

After the collapse of software developer stocks last week, caused by concerns about the negative impact of artificial intelligence on companies' business, investors are trying to find a bottom, Bloomberg writes. The Chipmakers Index rose 1 percent Wednesday, while an ETF tracking software stocks added 1.3 percent.

Nvidia shares rose 1.6% after Meta Platforms on Tuesday announced plans to buy a large batch of Nvidia chips as part of an expansion of its data centers.

Amazon shares, rose nearly 2% after billionaire Bill Ackman's Pershing Square fund said it will increase its stake in the e-commerce giant by 65% in the fourth quarter of 2025. Amazon is now the fund's third-largest position. Amazon's stock extended gains for a second straight day after breaking its longest streak of declines since 2006 - and despite Berkshire Hathaway getting rid of 77% of its holdings in the company in the last quarter under Warren Buffett's leadership.

And Micron Technology' s securities rose more than 5% after David Tepper's Appaloosa Management disclosed an increase in its stake in the chip maker at the end of 2025.

Against the backdrop of support from these securities, the founder of Logan Capital Management Stephen Lee noted in an interview with CNBC that lesser-known technology companies, including representatives of the "industrial tech sector" like Trimble, are also doing well. Shares of this company rose almost 2% during the session.

Investors on Wednesday also analyzed the minutes of the Fed's January meeting. It showed that members of the Federal Open Market Committee generally supported the decision to leave the key interest rate unchanged in the range of 3.5%-3.75%. However, Fed officials were divided on the future direction of monetary policy, CNBC noted. "Several" officials suggested that the central bank may have to raise rates if inflation remains above target, Bloomberg reports.

Meanwhile, oil prices jumped amid concerns about escalating U.S.-Iran relations. U.S. Vice President J.D. Vance said Tuesday that Iran had ignored U.S. "red lines" in this week's nuclear talks and that a military scenario was still not out of the question.

- A potential military conflict between the U.S. and Iran appears to have held back the Dow Jones Industrial Average's rally Wednesday and overshadowed the release of minutes from the Federal Reserve's January meeting, MarketWatch writes. The index was up 364 points on Wednesday, but ended trading with a gain of just 129 points. The index's movement "initially lacked a clear driver," Zach Hill of Horizon Investments told MarketWatch, and then trading showed "a slight risk-off bias and fading momentum amid potential geopolitical conflict."

Hill also noted that the minutes of the Fed's January meeting, which sounded more cautious in assessing the inflation outlook, had less to do with the Dow's pullback. Fed officials have long remained "a little more conservative" in their approach to what they want to do with interest rates than market participants, he said.

- "From our perspective, the [Fed] minutes reiterate our position that rate cuts are not being considered for the foreseeable future," Charlie Ripley of Allianz Investment Management told Bloomberg.

- Daniel O'Regan of Mizuho believes that the drivers of recent market growth could be quarterly reports that dispelled fears, strong macro data and a return of optimism about the economy, writes Barron's. In particular, data on building permits, housing starts and industrial production beat economists' consensus forecast.

- The selloff in software companies' shares is probably "excessive" because it was largely impulsive: investors are trying to identify winners and losers in the AI era, said Paul Stanley of Granite Bay Wealth Management. "While AI looks very promising, investors should not assume that all companies will be among the winners on the AI trend," he told Bloomberg.

This article was AI-translated and verified by a human editor