Technology stocks lifted the S&P 500 and the Nasdaq on Wednesday, ahead of the release of the Federal Reserve's minutes from its latest policy meeting, while a drop in Boeing shares kept the Dow lower. The modest gains on the main indexes follow a US Labour Department report that showed consumer prices increased by the most in 14 months in March, although underlying inflation remained benign against the backdrop of slowing domestic and global economic growth.
The report backed the Federal Reserve's decision last month to suspend its three-year campaign to raise interest rates. "The news of inflation staying at healthy levels is good news because it gives the Fed time to be patient before they decide what they should be doing next," said Marco Pirondini, head of US equities at Amundi Pioneer Asset Management.
The central bank will release minutes from its March meeting at 2:00 p.m. ET (1800 GMT) that will give an insight into the Fed's thinking behind its move to suspend rate hikes this year. Financials fell 0.16%, with bank stocks down 0.33%. Chief executives of some of the largest US banks appeared before Congress, giving lawmakers their first opportunity to grill the lenders since the 2007-09 financial crisis.
JPMorgan Chase & Co and Wells Fargo & Co will kick-off the earnings season in earnest on Friday. S&P 500 banks are seen posting earnings growth of 1.9%, down from 8.2% estimated six months ago, according to Refinitiv data.
Industrial stocks were down 0.25%, as Boeing Co shares continued to weigh after the company on Tuesday reported zero new orders for its 737 MAX jet following a worldwide grounding of the aircraft in March. Its shares were down 1.1%. At 12:54 p.m. ET, the Dow Jones Industrial Average was down 26.05 points, or 0.10%, at 26,124.53, the S&P 500 was up 5.10 points, or 0.18%, at 2,883.30 and the Nasdaq Composite was up 35.40 points, or 0.45%, at 7,944.67.
Seven of the 11 major S&P sectors were higher. Technology stocks gained 0.50%, helped by Microsoft Corp, Salesforce.com Inc and Intel Corp.
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