S&P 500 sets a new high as stocks rise after the Fed signals it will shrink its bond holdings

U.S. stocks rose for the fifth consecutive day Wednesday as investors went on a late buying spree. The gains came after news that the Federal Reserve plans to start reducing its huge portfolio of bonds. The Standard & Poor’s 500 index closed at a record high.

Stocks were slightly higher for most of the day as the market kept chipping away at the losses it suffered last week. Technology companies such as TurboTax maker Intuit and materials companies including industrial gas company Praxair made some of the biggest gains.

In the afternoon the Federal Reserve released the minutes from its latest meeting. Officials discussed steps for shrinking the central bank’s $4.5 trillion in bond holdings, and Wall Street liked what it saw.

The Standard & Poor’s 500 index picked up 5.97 points, or 0.2%, to 2,404.39. The Dow Jones industrial average gained 74.51 points, or 0.4%, to 21,012.42. The Nasdaq composite rose 24.31 points, or 0.4%, to 6,163.02. The Russell 2000 index of small-company stocks added 1.53 points, or 0.1%, to 1,382.51.

In the wake of the Fed’s disclosure, bond prices turned higher. The yield on the 10-year Treasury note fell to 2.25% from 2.28%. High-dividend stocks including utility companies and real estate investment trusts climbed as investors looked for yield.

Industrial gas company Praxair rose after it agreed to terms with Germany’s Linde. The companies said they would combine in an all-stock deal in December, part of a wave of consolidation in the chemical and materials industries. Praxair picked up $2.30, or 1.8%, to $132.27. Linde’s German stock rose 2.8%.

Dow Chemical and DuPont, which are also planning to combine, rose as well. Dow picked up 67 cents, or 1.1%, to $61.45 and DuPont advanced $1.04, or 1.3%, to $78.38.

Accounting software maker Intuit had a stronger quarter than investors expected and Wall Street was also pleased with its forecasts. Its stock gained $8.68, or 6.7%, to $137.83. Other technology firms rallied. Hard drive maker Western Digital added $1.67, or 1.9%, to $89.70.

Benchmark U.S. crude lost 11 cents to settle at $51.36 a barrel in New York while Brent crude, used to price international oils, sank 19 cents to $53.96 a barrel in London. Gold fell $2.40 to $1,253.10 an ounce.

The dollar rose to 111.90 yen from 111.76 yen. The euro edged up to $1.1195 from $1.1185.

UPDATES:

3:50 p.m.: This article was updated with information about the market’s close.

9:10 a.m.: This article was updated with more recent market conditions.

This article was originally published at 6:55 a.m.