Major U.S. Averages Close Higher As Fed Minutes Trigger Some Late Buying

(RTTNews) - U.S. stocks settled modestly higher on Wednesday, gaining in strength in late afternoon trades after the minutes from the Federal Reserve's latest monetary policy meeting showed the central bank was committed to bringing down inflation.

The minutes said the members of the central bank said there would be another 50 or 75-basis point move in the July meeting.

The minutes also said that the participants continued to anticipate that ongoing increases in the target range for the federal funds would be appropriate to achieve the monetary policy committee's objectives.

Technology stocks had a good outing once again, extending gains from the previous session.

The major averages all ended on the positive side after moving along the flat line for much of the day's session. The Dow settled with a gain of 69.86 points or 0.23 percent at 31,037.68. The S&P 500 ended higher by 13.69 points or 0.36 percent at 3,845.08, while the Nasdaq closed higher by 39.61 points or 0.35 percent at 11,361.85.

Technology stocks Apple, Alphabet, Amazon, Cisco Systems and Meta Platforms moved higher.

United Health, Walmart, P&G, Travelers Companies, Visa, Merck and J&J also ended on the positive side.

Goldman Sachs, Wallgreens Boots Alliance, Chevron, American Express, JP Morgan Chase, Walt Disney and Boeing closed weak.

Energy stocks drifted lower as energy prices pared early gains and fell into the red amid worries about outlook for energy demand.

On the economic front, Markit Economics said the S&P Global US Composite PMI was revised higher to 52.3 in June from a preliminary reading of 51.2, down from 53.6 in May.

The S&P Global US Services PMI was revised higher to 52.7 in June from a preliminary score of 51.6, and down from 53.4 in May, pointing to the weakest rise in activity in six months.

In overseas trading, Asian stocks ended lower on Wednesday as recession worries weighed, and investors awaited an update from the FOMC meeting minutes due later in the day.

Chinese shares tumbled as another wave of COVID infections across Shanghai raised the specter of another lockdown. The benchmark Shanghai Composite index fell 1.43 percent. Hong Kong's Hang Seng closed 1.22 percent lower.

The major European markets ended on buoyant note with stocks moving higher on bargain hunting and some encouraging economic data. Investors also reacted positively to news that Norwegian oil and gas workers called off a strike.

The pan European Stoxx 600 climbed 1.66 percent. The U.K.'s FTSE 100 gained 1.17 percent, Germany's DAX surged 1.56 percent, and France's CAC 40 jumped 2.03 percent.