US Stocks end higher on Tuesday

US stock market finished choppy trading session slightly higher after spending the day bouncing back and forth across the unchanged on Tuesday, 21 May 2024, as investors assessed the latest comments from Federal Reserve officials for clues on the timing of a rate cut.

Investors are awaiting the Fed minutes of last monetary policy, due on Wednesday, after multiple Fed officials on Tuesday reinforced the stance that it would be best for the central bank to exercise patience before starting to cut interest rates.

Several Fed officials cautioned this week that the central bank needed much more confidence that inflation was easing, before it could begin trimming rates. But they also downplayed speculation that the bank would increase rates further. Central bank Governor Christopher Waller said he wants to see "several months" of supportive inflation data before lowering rates.

At closing bell, the Dow Jones Industrial Average index added 66.22 points, or 0.17%, to 39,872.99. The S&P500 index climbed up 13.28 points, or 0.25%, to 5,321.41. The tech-heavy Nasdaq Composite index increased by 37.75 points, or 0.22%, to 16,832.62.

Total 6 of 11 S&P500 sectors closed higher. Utilities sector was top performer, rising 0.97%, while energy sector was bottom performer, falling 0.51%.

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