Investing.com -- The S&P 500 closed higher Wednesday as investors continued to digest clues on interest rates from the Federal Reserve, a day ahead of fresh inflation data and Tesla robotaxi event.
At 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average gained 431 points, or 1%, the S&P 500 gained 0.7%, and NASDAQ Composite added 0.5%.
Fed minutes show majority of members supported jumbo cut; inflation data
While a "substantial majority" of Federal Reserve policymakers backed the central bank's jumbo rate cut in September, there were signs that some members preferred to kick off the rate cutting cycle with a more modest cut on worries about the strength of the economy, according to the minutes of the Federal Reserve’s Sept. 17-18 meeting, released Wednesday.
The minutes were somewhat stale as data since the September meeting has pointed to stronger economic growth, dimming investor bets on another round of jumbo rate cuts.
Strong payrolls data released last week sparked doubts over just how much impetus the Fed has to keep cutting rates at a fast pace. Traders were seen pricing in an 81.1% chance for a 25 basis point reduction in November, and an 18.9% chance rates will remain unchanged, according to CME Fedwatch.
The Fed cut rates by 50 bps in September and signaled future cuts will still be dependent on inflation and the labor market.
On the economic front, trhe consumer price index for September is due Thursday will offer investors fresh clues on the path of monetary policy. There are growing concerns that the last mile of getting inflation to the 2% is likely to more challenging than initially expected in the wake of stronger labor market.
Google (NASDAQ:GOOGL) facing a possible break-up; Tesla robotaxi event eyed
Alphabet (NASDAQ:GOOG) fell 2% on news that the US Department of Justice is mulling possible sanctions against Google's owner, following a landmark antitrust case that found the group guilty of abusing its dominant market position.
The DOJ is "considering behavioral and structural remedies" that would prevent Google from using products like its web browser, app store or operating system to advantage its search business over its competitors, according to a federal court filing on Tuesday.
"For more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little-to-no incentive to compete for users," the DOJ added.
Reddit Inc (NYSE:RDDT) closed marginally higher after Jefferies initiated coverage on the stock with a buy rating on expectations that high user growth could boost earnings.
Boeing Co (NYSE:BA) fell more than 3% as aircraft maker faces an ongoing strike from workers of the the International Association of Machinists union after withdrawing its contract offer to the union.
Arcadium Lithium (NYSE:ALTM) stock soared 31% after global miner Rio Tinto (NYSE:RIO) agreed to acquire its US peer in a $6.7 billion all-cash deal, according to a statement on Wednesday.
Tesla Inc (NASDAQ:TSLA), meanwhile, fell 1% as the electric vehicle maker gears up to kick off its robotaxi event slated for Wednesday.
(Peter Nurse, Ambar Warrick contributed to this article.)