US: Stocks rise modestly as traders assess Fed minutes

WALL Street logged modest gains on Wednesday as investors awaited a government employment report due this week while assessing the prospect of further interest rate cuts.

The Dow Jones Industrial Average added 0.3 per cent to 42,635.20, while the broad-based S&P 500 Index picked up by 0.2 per cent to 5,918.25.

The tech-focused Nasdaq Composite Index lost 0.1 per cent to 19,478.88.

“It’s been up and down most of the day,” said Art Hogan of B. Riley Wealth Management.

“I think the biggest of the headwinds thus far this week has been the surge in yields in the Treasury market,” he added.

Minutes released on Wednesday from the Federal Reserve’s recent policy meeting showed that several officials raised concerns the fight against inflation may have stalled.

“I think it very much corroborated the idea that the Fed is willing to take some time before they cut rates again,” Hogan noted.

The stock market is closed on Thursday to mark the death of former US president Jimmy Carter.

Looking ahead, traders will be eyeing the first government jobs report released this year, on Friday.

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Meanwhile, the US private sector added fewer jobs than expected in December according to payroll firm ADP, with employment rising by 122,000 jobs, down from 146,000 in November. AFP