NEW YORK — Investors drew some comfort Wed-nesday from signals the Federal Reserve is worried about the slow pace of the U.S. economic recovery and feels more urgency about providing help.
NEW YORK — Investors drew some comfort Wed-nesday from signals the Federal Reserve is worried about the slow pace of the U.S. economic recovery and feels more urgency about providing help.
Stocks climbed back from lows after minutes from the last major Fed meeting were released. The Standard & Poor’s 500 index, down most of the day, eked out a gain of 0.32 point to 1,413.49.
The Dow Jones industrial average closed down 30.82 at 13,172.76. It was down as much as 83 points earlier. The Nasdaq composite index added 6.41 points to 3,073.67.
The price of gold rose, as it sometimes does when investors think the Fed is about to pump money into the economy. Gold climbed $14 an ounce to $1,657, its highest level since early May, in trading after the day’s official close.
When investors expect stimulus from the Fed, they sometimes buy gold in anticipation of a weaker dollar or because of inflation fears.
The minutes, from a meeting July 31 and Aug. 1, showed “many members” of the Fed’s Open Market Committee felt additional action would be warranted unless the economic recovery shows “substantial and sustainable strengthening.”
The minutes also showed many officials favored pushing any increase in short-term interest rates beyond the Fed’s current target of late 2014. Many economists think the target will be pushed to mid-2015.
Doug Cote, chief market strategist at ING Investment Management, wondered why the Fed needed to act. He said major economic data recently, including on jobs and consumer spending, have showed the recovery picking up.
“Why do an extraordinary form of stimulus in a moderately recovering economy?” he said.
On Wednesday, the National Association of Realtors reported Americans bought more homes in July than in June and prices rose, evidence of a recovering housing market. The 2.3 percent increase in sales from June was the first gain in three months.
But the rate of home sales, at 4.47 million annually, was below the pace of April and May and well below the rate of roughly 5.5 million economists consider healthy.
“The economic numbers haven’t been robust, but they’ve been better lately,” said Stephen Carl, principal and head equity trader at investment bank The Williams Capital Group.
The dollar fell sharply against most major currencies after the Fed minutes came out. Additional bond purchases by the Fed could push interest rates lower and weaken the dollar.
The euro rose to $1.2530 in late trading from $1.2467 late Tuesday. The euro jumped as high as $1.2538 after the minutes were released, its highest against the dollar since July 5.
European markets fell. Eurozone leaders met with their counterparts from Greece, which has asked for more time to meet its debt reduction targets.
The delay could set up a confrontation with Germany, which has been growing impatient. Germany’s key stock index, the DAX, fell 1 percent, and France’s CAC 40 slipped 1.5 percent.
Earlier in the day, Asian markets closed down after Japan posted a trade deficit for July, reversing a year-ago surplus and adding to signs of a global economic slowdown.
Japan’s Nikkei 225 index shed 0.3 percent, while South Korea’s Kospi dropped 0.4 percent and mainland China’s Shanghai Composite Index slid 0.5 percent.
Bond traders have become skittish about the Asian slowdown and the debt crisis in Europe. Investors returned to the haven of U.S. Treasurys, sending the yield on the benchmark 10-year down to 1.72 percent from 1.81 percent late Tuesday.