As reported by Wall Street Journal’s Steven Russolillo:
U.S stocks accelerated following the release of the Federal Reserve’s minutes, which showed central-bank officials are in no hurry to tighten monetary policy even as they held detailed exit-strategy talks.
The Dow Jones Industrial Average rose 90 points to 12569 and hit session highs as Caterpillar, Chevron and Exxon Mobil powered the blue-chip index in Wednesday afternoon trading. The Standard & Poor’s 500-stock index rose 0.9% to 1342. Energy and materials stocks were the big gainers as oil prices jumped back above $100 a barrel. The S&P 500’s energy sector was up 2.5%.
The technology-oriented Nasdaq Composite gained 1.2% to 2817.
Federal Reserve officials appeared to agree at their last meeting that letting the central bank’s balance sheet slowly shrink was likely to be the first step toward tightening monetary policy. Nevertheless, they aren’t ready to start executing the plan until they are sure the economy can bear it, according to minutes of the April 26-27 Federal Open Market Committee meeting.
Fed officials had an extensive discussion about their exit strategy, which carries much uncertainty because it never has been done before. Fed officials have indicated the process is likely to be gradual and must be flexible because conditions may change.