NEW YORK, May 23 (Xinhua) -- U.S. stocks closed higher on Wednesday, reversing earlier losses, after the Fed minutes showed willingness to let inflation temporarily run above its target.
The Dow Jones Industrial Average rose 52.40 points, or 0.21 percent, to 24,886.81. The S&P 500 increased 8.85 points, or 0.32 percent, to 2,733.29. The Nasdaq Composite Index gained 47.50 points, or 0.64 percent, to 7,425.96.
The minutes from Fed's May meeting on Wednesday showed that central bank officials considered "a temporary period of inflation modestly above 2 percent would be consistent with the Committee's symmetric inflation objective."
The Fed also pointed to an interest rate hike at the June meeting, saying "It would likely soon be appropriate for the Committee to take another step in removing policy accommodation."
Meanwhile, investors were also digesting a batch of quarterly earnings reports and economic data.
Several major U.S. retailers reported earnings on Wednesday.
Shares of Minnesota-based Target decreased over 5 percent after it reported first-quarter earnings that missed analysts' estimates, while shares of Tiffany surged more than 23 percent at market closing after the high-end jeweler posted quarterly results, beating expectations.
On the economic front, the seasonally adjusted IHS Markit U.S. Manufacturing Purchasing Managers' Index (PMI) registered 56.6 in May, up from 56.5 in April, indicating the strongest improvement in business conditions since September 2014.
New-home sales were at a seasonally adjusted annual rate of 662,000 in April, below market consensus, according to the U.S. Department of Commerce on Wednesday.
