U.S. stocks closed mixed Wednesday as investors assessed the possibility of a June rate hike following the release of the Federal Reserve's minutes from its latest policy meeting.
The Dow Jones Industrial Average edged down 3.36 points, or 0. 02 percent, to 17,526.62. The S&P 500 edged up 0.42 points, or 0. 02 percent, to 2,047.63. The Nasdaq Composite Index rose 23.39 points, or 0.50 percent, to 4,739.12.
U.S. Fed officials are open to an interest rate hike in June, if the economy continues to improve, according to the minutes of the Fed's April 26-27 meeting released Wednesday afternoon.
"Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the (Federal Open Market) Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June," said the minutes.
Policymakers agreed that risks to the U.S. economic outlook posed by global economic and financial developments have receded, but noted that developments abroad still warranted close monitoring.
"We continue to expect the Fed will NOT raise rates in June. But the minutes indicate there will be a lively discussion and the decision will be a close call, as apparently it was in April," said Chris Low, chief economist at FTN Financial, in a note.
A batch of economic data, including the consumer price index, housing starts and industrial production, came out better than expected Tuesday, which spurred speculations that the Fed may be more hawkish on a second rate hike.
Meanwhile, San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart said Tuesday that the U.S. central bank could still raise interest rates two or three times this year, according to Reuters.
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