S&P 500 hits record high as markets weigh Fed policy and Trump's tariff threats

Microsoft shares increased by 1.3 percent, leading gains in the technology sector after the company introduced its first quantum computing chip.

Tesla saw an increase of nearly 2 percent, while Analog Devices surged almost 10 percent following strong quarterly earnings that exceeded expectations.

On Tuesday, Trump raised the possibility of a 25 percent tariff on imported autos, chips, and pharmaceuticals. While he did not specify whether these tariffs would be broad or targeted, he indicated they could take effect as early as April 2.

“I think there’s a lot of noise tied to DOGE, Elon Musk, and tariffs in the short-term, which is what you’re seeing today. And I think a lot of this stuff will linger,” said Jim Elios, founder, and chief investment officer at Elios Financial Group.

“It’s the Trump effect with headlines that are weighing on markets and causing some pain. In the long term, I’m still really bullish about how this can become a pro-business environment,” added Elios.