U.S. equities closed higher on Wednesday as investors cheered the Federal Reserve’s slightly dovish tilt. Some of the FOMC members expressed their worries on inflation.

The S&P 500 gained 0.25 percent, as real estate led advancers, to post a record close. The Dow Jones industrial average rose about 75 points, with Goldman Sachs contributing the most gains. The Nasdaq composite advanced 0.4 percent.

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 SP500 closed at record highs, above 2400. The upward move post FOMC minutes could mean that more gains are to come. source: Bloomberg

What’s important, historically, stocks have mostly posted gains on days when the Fed releases minutes since Janet Yellen became chair. On average, the S&P 500 has gained 0.28 percent on those days, with health care, consumer discretionary and materials outperforming. 

U.S. equities came into Wednesday’s session riding a four-day winning streak, bouncing back from their biggest sell-off of the year. The S&P and the Dow closed above their May 16 closing levels, wiping out last Wednesday’s losses. Overseas, European stocks traded marginally higher, while Asian equity markets closed mostly higher despite Moody’s downgrading China’s credit rating for the first time since 1989.

What’s more, Strategists at JPMorgan said on Thursday that U.S. stocks could face a short-term hit from political events as some leveraged bets get unwound, though corporate earnings strength was still enough for them to maintain their year-end forecast on the S&P 500. What’s more, the bank added that any support to stock markets is likely to come from corporate growth, JPMorgan said, adding it did not expect investors would be willing pay higher multiples without progress on pro-growth reforms in the U.S.

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 The SP500 has broken above 2400 and with such a breakout a move towards 2500 looks like the base case scenario.