The S&P 500 closed slightly higher on Wednesday. After the past week, even modest gains are encouraging.
Stocks have generally fallen since last week's Fed meeting, when central bankers raised their interest rate forecasts for next year. Investors are also weighing the impact of higher energy prices on inflation and the possibility of a government shutdown. The Fed's rate hikes this year have been an attempt to tame inflation.
The S&P 500 closed almost flat. The Nasdaq composite added 0.2%, while the Dow fell 0.2%.
With the U.S. economy stronger than expected, some investors are betting that the Fed will keep interest rates high to fight inflation, or because it sees no pressing need to cut rates aggressively. That has helped push bond yields higher. The yield on the 10-year Treasury note rose to 4.625% from 4.558% Tuesday, its highest level since October 2007.
Energy led the S&P 500 higher, with the sector up 2.5%. Brent crude, the international oil benchmark, also rose. The Energy Information Administration reported that U.S. crude oil inventories fell more than expected last week, hitting their lowest level so far this year.
Overseas, the Stoxx Europe 600 index fell 0.2 percent.