U.S. stocks ticked up Wednesday ahead of the release of the Federal Reserve’s latest meeting minutes and fresh data on the labor market.
The S&P 500 edged 0.2% higher as the broad market index inched back toward its recent all-time closing high. The Nasdaq Composite Index climbed 0.6%, suggesting that the benchmark for large-cap technology stocks may climb for a fourth trading session. The Dow Jones Industrial Average was near flat in early trading.
Investors have propelled the major indexes into record territory following signs that the economy is recovering and that the Federal Reserve doesn’t plan to pull back on supportive policies in the near term. Government bond yields have also dropped to their lowest in over four months, bolstering appetite for assets like growth stocks that deliver higher returns.
“It is really the tech space that’s been driving the market,” said Esty Dwek, head of global market strategy at Natixis Investment Solutions. “Over the next few weeks and months, hopefully we’ll see that U.S. growth is holding up well, that will continue to support markets.”
Government bonds continued to rally, sending the yield on the benchmark 10-year Treasury note ticking down to 1.325% and extending its recent slide into a third day. On Tuesday, the yield fell to 1.369%, its lowest level since late February. Yields drop when bond prices rise.