U.S. stocks closed higher Wednesday, helped by rising oil prices and after the Fed released minutes from its June meeting.
The Federal Reserve meeting minutes released in the afternoon showed policymakers said it was prudent to wait for more data and the Brexit vote result before raising rates. The non-farm payrolls report due Friday is the key data for the week.
Policy members cited a slowdown in hiring as a reason to keep rates unchanged at the meeting last month, the minutes showed.
The major U.S. indexes recovered opening losses to attempt gains ahead of the minutes' release.
"It's just a combination of everything (that happened) overnight just started to reverse," said Jeremy Klein, chief market strategist at FBN Securities.
U.S. crude settled up 1.78 percent or 83 cents, at $47.43 a barrel ahead of inventory data due in the next 24 hours. WTI fell more than 4.5 percent Tuesday.
The benchmark 10-year Treasury yield came off of its record low of 1.321 percent to trade near 1.38 percent. The Japanese yen was near 101 against the U.S. dollar after earlier threatening to break below 100.
"It's safety over yield right now, people just want their money back and they don't necessarily care that they got much interest with it," said JJ Kinahan, chief strategist and managing director TD Ameritrade. "People get concerned, especially when you see yields at all-time lows."
Global bond yields hit new record lows this week. The German 10-year bund fell to negative 0.204 percent Wednesday, while the UK 10-year gilt dropped to 0.724. Italy, Japan, and Switzerland's government bond yields also hit new bottoms; Japan's yield curve turned almost entirely negative, with the exception of the 30-year note, yielding about 0.045 percent.
The Dow Jones industrial average traded about 50 points higher withHome Depot and UnitedHealth having the greatest positive impact, while Boeing, DuPont and 3M weighed.
The Nasdaq composite outperformed as shares of Facebook,Amazon.com, Apple and Alphabet climbed. The iShares Nasdaq Biotechnology ETF (IBB) traded more than 2 percent higher.
The Dow transports traded half a percent lower after earlier falling more than 1.5 percent. Norfolk Southern led advancers, while American Airlines was the greatest decliner.
Earlier, the major indexes briefly recovered much of their opening losses after the ISM non-manufacturing PMI came in at 56.5 for June versus 52.9 in May. Markit's U.S. services PMI showed marginal expansion at 51.4 in June, up fractionally from 51.3 in May.
Other Treasury yields came off lows and tried for gains in late-morning trade, with the 2-year yield last near 0.57 percent. The 30-year Treasury yield was last trading near 2.15 percent after earlier touching a fresh record low of 2.098 percent.
Pound sterling traded near $1.296 after hitting a fresh 31-year low against the U.S. dollar overnight.
The U.S. dollar index struggled for gains, with the euro near $1.109 and the yen near 101.4 yen versus the greenback as of 1:22 p.m. ET.
"The question is what's going to happen when you can't just let the market cover up the real damage and the question is how is the real economy going to grow with all this uncertainty going on," said Adam Sarhan, CEO of Sarhan Capital.
Earlier, a report showed the U.S. trade deficit widened more than expected in May to $41.1 billion from $37.4 billion the prior month.
European stocks were mostly lower, with the German DAX off more than 1.5 percent, tracking for a weekly decline of more than 4 percent.
The STOXX Europe 600 Banks index were about 2.5 percent lower, on pace for a weekly loss of more than 6.5 percent.
Henderson Global and Columbia Threadneedle became the latest firms to suspend dealings in U.K. property funds Wednesday.
"News like that makes people nervous," Coleman said, noting he "wouldn't equate it to anything near to 2008."
|S&P 500||S&P 500 Index||2099.73||11.18||0.54%|
Overnight, the People's Bank of China set the official midpoint rate of the yuan against the dollar at 6.6857, 0.4 percent softer than the previous fix and the weakest since November 2010, according to Reuters.
Asian stocks closed mostly lower, with the Hang Seng 1.2 percent lower and the Nikkei 225 nearly 1.9 percent lower. The Shanghai composite closed about a third of a percent higher.
In afternoon trade, the Dow Jones industrial average rose 50 points, or 0.28 percent, to 17,889, with Merck leading advancers and DuPont the greatest decliner.
The S&P 500 traded up 6 points, or 0.3 percent, to 2,094, with health care leading seven sectors higher and telecommunications the biggest laggard.
The Nasdaq composite climbed 26 points, or 0.54 percent, to 4,848.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, briefly jumped above 17.
About four stocks advanced for every three decliners on the New York Stock Exchange, with an exchange volume of 449 million and a composite volume of 2.054 billion in afternoon trade.
U.S. crude oil futures for August delivery rose 72 cents to $47.32 a barrel on the New York Mercantile Exchange.
Gold futures for August delivery jumped $8.90 to $1,367.60 an ounce as of 1:26 p.m. ET.
On tap this week:
10 a.m. ISM nonmanufacturing
2 p.m. FOMC minutes
8:15 a.m. ADP payrolls
8:30 a.m. Initial claims
8:30 a.m. Employment report
3 p.m. Consumer credit
*Planner subject to change.