US stocks closed mixed; S&P 500 notches another record high

By Damian J. Troise and Alex Veiga

Wall Street capped another choppy day of trading Wednesday with a mixed finish for stock indexes and another all-time high for the S&P 500.

The benchmark index inched up 0.1 per cent after spending much of the day wavering between small gains and losses. Technology, communication and financial companies helped lift the market, offsetting a pullback led by industrials, materials and health care stocks. Treasury yields were also mixed.

The broader market has been mostly subdued this week as investors remain cautiously optimistic about the economic recovery. Vaccine distribution has been ramping up across the US and President Joe Biden has bumped up his deadline for states to make doses available to all adults by April 19. The vaccines are helping to fuel a recovery, but the virus is still very much a threat as variants are discovered and threaten additional lockdowns.

Analysts expect the economy to recover this year, but they also anticipate the market remain choppy.
Analysts expect the economy to recover this year, but they also anticipate the market remain choppy.Credit:NYSE

The S&P 500 rose 6.01 points to 4079.95. The Dow Jones Industrial Average gained 16.02 points, or 0.1 per cent, to 33,446.26. The Nasdaq composite slipped 9.54 points, or 0.1 per cent, to 13,688.84. The S&P 500 and Dow each set record highs on Monday.

Small company stocks, which have been outgaining the broader market this year, took the brunt of the selling. The Russell 2000 index of smaller companies gave up 36.10 points, or 1.6 per cent, to 2,223.05. The index is up 12.6 per cent so far this year, while the S&P 500, which tracks large companies, is up 8.6 per cent.

Carnival, which essentially shut down during the pandemic, rose 1.4 per cent. The cruise operator said bookings have picked up. Other cruise line operators also gained ground as they plan to restart operations.

Analysts expect the economy to recover this year, but they also anticipate the market remain choppy as investors shift money to companies and industries that stand to benefit as the pandemic eases.

The stock indexes were little changed following the release of minutes from the Federal Reserve’s latest meeting on interest rate policy.


The minutes revealed that Fed officials were encouraged last month by evidence the US economy was picking up, but they showed no sign of moving closer to ending their bond purchases or lifting their benchmark short-term interest rate from nearly zero.

Fed policymakers also said they expect inflation will likely rise in the next few months because of supply bottlenecks, but they believe it will remain near their 2 per cent target over the longer run.

“Nothing was all that surprising from the minutes,” said Stephanie Roth, senior markets economist at JP Morgan Private Bank. “The Fed is watching closely, not just the unemployment rate, but they’re really focusing on bringing back the population that has fallen out of the labour force.”

The minutes are from a Fed meeting that came before last week’s March jobs report, which showed a surprisingly strong 916,000 positions were added in the US that month, the most since August, and the unemployment rate fell to 6 per cent from 6.2 per cent.


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