FX.co ★ U.S. Stocks Close Flat After Cautious Session; Nasdaq Outperforms

U.S. stocks closed modestly higher on Wednesday following a tepid session, as investors remained cautious ahead of the personal consumption expenditures price index report scheduled for release on Friday.

Additional economic data expected this week include first quarter GDP figures, May's durable goods orders, and the jobless claims report.

All major indexes finished in positive territory. Technology stocks led the way, propelling the Nasdaq to a close of 17,805.16, up by 87.50 points or 0.49 percent. The Dow Jones Industrial Average inched up 15.64 points or 0.04 percent to end at 39,127.80, while the S&P 500 climbed by 8.60 points or 0.16 percent to settle at 5,477.60.

Bank stocks garnered attention as the central bank's annual stress test approached, whereas shares of energy firms faced challenges due to sluggish oil prices.

Amazon saw a notable surge of approximately 4 percent, pushing its market capitalization beyond the $2 trillion mark.

Apple Inc., Tesla Inc., Walmart, Home Depot, United Parcel Service, and Boeing recorded gains ranging from 1 to 4 percent.

Conversely, shares of Automatic Data Processing fell over 4 percent. Dell Technologies, Analog Devices, Pfizer, Morgan Stanley, Amgen, Cisco Systems, Qualcomm, Chevron, Advanced Micro Devices, and Merck experienced declines between 1 and 3 percent.

On the economic front, a report from the Commerce Department revealed a substantial decrease in new home sales for May, plunging 11.3 percent to an annual rate of 619,000, following a 2.0 percent increase to a revised rate of 698,000 in April. Economists had anticipated new home sales to rise to an annual rate of 640,000 from the initially reported 634,000 for the previous month.

Building permits in the U.S. also decreased, falling 2.8 percent to a seasonally adjusted annual rate of 1.399 million in May, revised up from an earlier estimate of 1.386 million.

In overseas markets, Asian stocks largely ended higher on Wednesday, buoyed by a rebound in tech stocks that helped counteract hawkish remarks from Federal Reserve officials.

With considerable uncertainty surrounding future interest rates, investors are keenly awaiting the release of critical U.S. inflation data later this week for further directional guidance.

European stocks, however, were unable to maintain early gains and drifted lower on Wednesday as investors opted to reduce their commitments ahead of significant U.S. economic data, including reports on personal income and spending, amid ongoing indecisiveness about interest rate projections.