U.S. stocks closed higher on Wednesday, with consumer discretionary and materials leading, as investors digested the Federal Reserve's December meeting minutes.
The Dow Jones industrial average added about 60 points, with IBM contributing the most gains, putting it within 100 points of 20,000. The Nasdaq composite advanced about 0.9 percent.
The S&P 500 gained around 0.6 percent and briefly broke above its previous closing high, with consumer discretionary and materials rising more than 1 percent. "That shows that people are bottom-fishing," said Kim Forrest, senior equity analyst at Fort Pitt Capital. "Those retail stocks have gotten way oversold recently."
The minutes showed the central bank is concerned about a strengthening dollar, and that more fiscal stimulus could raise demand above sustainable levels. Investors were looking for clues about what the central bank thought of President-elect Donald Trump's proposed fiscal policy measures. The Fed raised rates at its last meeting for just the second time in a decade and forecast three rate hikes for 2017.
"To some extent, [the minutes] reinforce the positive notion that we'll see more growth," said Bruce McCain, chief investment strategist at Key Private Bank. "That's the glass-half-full view the market seems to be taking."