The Dow Jones Industrial Average rose 104 points, or 0.3%, while the S&P 500 and the Nasdaq Composite advanced 0.34% and 0.01%, respectively. Both the S&P 500 and the Nasdaq finished in record territory.
|I:DJI||DOW JONES AVERAGES||34792.67||-323.73||-0.92%|
|I:COMP||NASDAQ COMPOSITE INDEX||14780.533084||+19.24||+0.13%|
The minutes from the Fed's June meeting showed the central bank has been caught off guard by the recent rise in inflation. However, while members expect inflation to climb above 2% in the near term, they still believe the gains are temporary.
The bond market is showing no signs of worry over inflation with the yield on the 10-year note falling 4.8 basis points at 1.321%, the lowest close since Feb. 18.
In stocks, the drop in the 10-year yield weighed on banks, including JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp., that benefit from a steeper yield curve.
|JPM||JPMORGAN CHASE & CO.||151.24||-1.65||-1.08%|
|BAC||BANK OF AMERICA CORP.||38.27||-0.28||-0.73%|
Credit card names were active after American Express received an upgrade from Goldman Sachs on Tuesday and Visa's CEO disclosed to CNBC that $1 billion was spent on goods and services via cryptocurrencies in the first half of the year.
|AXP||AMERICAN EXPRESS CO.||168.06||-0.98||-0.58%|
Meanwhile, Big Tech names like Apple Inc. and Microsoft Corp. continued their recent outperformance as Amazon moved closer to a $2 trillion market value. Social media companies including Facebook Inc. and Twitter Inc. lagged after former President Donald Trump filed a lawsuit against the companies, claiming he was unfairly censored.
Energy names remained headwinds for the broader market as West Texas Intermediate crude slipped $1.16 to $72.21 a barrel.
Elsewhere in commodities, Barrick Gold Corp. and Newmont Mining Corp. rallied as gold climbed $8 to $1,801.50 an ounce.
|GLD||SPDR GOLD SHARES TRUST - EUR ACC||169.53||+0.04||+0.02%|
|GOLD||BARRICK GOLD CORP.||21.65||-0.07||-0.32%|
Overseas markets were mostly higher.
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European bourses all gained with France’s CAC up 0.31%, Britain’s FTSE 100 advancing 0.71% and Germany’s DAX 30 rising 1.17%.
In Asia, China’s Shanghai Composite gained 0.67% while Hong Kong’s Hang Seng index and Japan’s Nikkei 225 declined 0.4% and 0.96%, respectively.