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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 settled into the red 28.77 points to break for lunch at 40,806.
The much-broader index recovered 5.12 points to 5,602.24.
The NASDAQ added 18.33 points, down from its highs of the morning, to 17,835.27.
Target jumped more than 12% 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 gained ground, lowering yields to 3.78% from Tuesday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices regained four cents at $73.21 U.S. a barrel.
Gold prices sagged $3.70 to $2,546.90.
