Investors Wednesday weighed a downbeat view of the economy from the Fed, data on inflation and housing starts, and a new record high for crude oilStocks closed higher Wednesday after reversing an earlier drop. Technology issues were among the session's best performers, aided by a strong earnings report from Hewlett-Packard (HPQ). Financial stocks rose later in the day, as minutes from Federal Reserve January policy meetings apparently supported hopes for further interest rate cuts. Stocks tied to precious metals and oil got a lift from gains in commodities futures, as crude oil topped the $100 mark once again to close at a new record.
Investors also digested reports showing worsening inflation risks and only slight improvement in the housing market.
On Wednesday, the Dow Jones industrial average finished higher by 90.04 points, or 0.73%, at 12,427.26. The broader S&P 500 index added 11.25 points, or 0.83%, to end at 1,360.03. The tech-heavy Nasdaq composite index gained 20.90 points, or 0.91%, to close at 2,327.10.
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