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NEW YORK, Oct 10 (Bernama-Xinhua) -- US stocks closed higher on Wednesday, continuing the positive momentum from the previous session, as investors reacted to the release of the Federal Reserve's meeting minutes and anticipated key economic data and earnings reports, reported Xinhua.
The Dow Jones Industrial Average rose 431.63 points, or 1.03 per cent, to 42,512.0. The S&P 500 added 40.91 points, or 0.71 per cent, to 5,792.04. The Nasdaq Composite Index increased 108.70 points, or 0.60 per cent, to 18,291.62.
Nine of the 11 primary S&P 500 sectors ended in green, with health and technology leading the gainers by going up 1.02 per cent and 1.01 per cent, respectively. Meanwhile, utilities and communication services led the laggards by dropping 0.89 per cent and 0.55 per cent, respectively.
Investors have maintained a largely positive outlook despite rising tensions in the Middle East and uncertainty surrounding the US elections, as strong economic data has provided support. US Treasury yields held steady, with the 10-year yield hovering just above 4 per cent, reflecting a cautious but stable market environment.
The minutes released Wednesday afternoon from the Federal Reserve's September meeting revealed that officials agreed to cut interest rates by 50 basis points but expressed uncertainty over how aggressive the policy should be. "Some participants observed that they would have preferred a 25 basis point reduction of the target range at this meeting, and a few others indicated that they could have supported such a decision," the minutes stated.
The decision aimed to balance progress on inflation with concerns about the labour market. The minutes also indicated that a "substantial majority" of participants favoured the larger cut, reflecting input from the full Federal Open Market Committee, not just voting members.
"The Federal Reserve appears to remain comfortable with where inflation is and trending," Josh Hirt, senior US economist at Vanguard, said after the minutes were released.
JPMorgan Chase and Wells Fargo are set to kick off earnings season for the banking sector on Friday. This quarter has been unusual for the US financial system, characterised by volatile markets and the Fed implementing its first interest-rate cut in more than four years. Investors will be closely watching how these factors have impacted the banks' performance and outlook.
--BERNAMA-XINHUA
