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The S&P 500 inched higher on Wednesday as traders looked ahead to minutes from the Federal Reserve’s latest policy meeting — seeking further insight into the prospect of an interest rate cut.
The Dow Jones Industrial index inched higher 5.39 points to start the mid-week session at 40,840.36.
The much-broader index recovered 19.12 points to 5,616.24.
The NASDAQ raced 98.14 points to 17,915.07.
Target jumped more than 15% after reporting earnings for the fiscal second quarter that exceeded Wall Street’s expectations. But fellow retailer Macy’s dropped more than 12% on a lowered full-year sales forecast.
The Fed minutes are slated for release at 2 p.m. ET. The central bank kept rates unchanged at its last meeting but said it has seen progress in lowering inflation. Investors will look for more clues on future policy moves — especially in September — as market participants remain all but certain of a loosening cycle beginning in the near future.
Traders are pricing in a 100% chance of a rate cut next month. To be sure, the Street is split over how big the reduction will be.
Prices for the 10-year Treasury stayed put, keeping yields at Tuesday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices regained 40 cents at $73.57 U.S. a barrel.
Gold prices sagged $1.60 to $2,536.
