Investing.com - U.S. stocks ended Wednesday largely lower after investors applauded dovish minutes from the Federal Reserve's most recent policy meeting and then sold on sentiments the document revealed no major changes in the direction of U.S. monetary policy.
At the close of U.S. trading, the Dow 30 fell 0.01%, the S&P 500 index fell 0.15%, while the Nasdaq Composite index fell 0.57%.
The S&P 500 VIX index, which measures the outlook for market volatility, was up 0.72% at 13.96.
Monetary authorities agree the economy is no longer in need of stimulus tools such as asset purchases, though concerns persist that inflation expectations may be dipping, the minutes of the Federal Reserve's October policy meeting released Wednesday revealed.
At its October monetary policy meeting, the Fed left its benchmark interest rate unchanged at 0.00-0.25% and said it was closing its monthly bond-buying program in a move widely expected by markets.
While the economy is improving, some monetary authorities want to be sure recovery remains sustained before raising interest rates, which is seen taking place in 2015, with a few voting members expressing concerns that inflationary pressures remain soft.
"Participants anticipated that inflation would be held down over the near term by the decline in energy prices and other factors, but would move toward the Committee's 2 percent goal in coming years, although a few expressed concern that inflation might persist below the Committee's objective for quite some time," the minutes read.
"Most viewed the risks to the outlook for economic activity and the labor market as nearly balanced. However, a number of participants noted that economic growth over the medium term might be slower than they currently expected if the foreign economic or financial situation deteriorated significantly."
Stocks rose initially on the dovish report, though they gave back gains on sentiments that the Federal Reserve is using such language to gradually acclimate markets to less accommodative policy down the road as opposed to reversing course, and higher borrowing costs are on the way.
Solid U.S. housing data failed to draw applause as investors remained in standby mode awaiting fresh data due out on Thursday.
The U.S. Commerce Department reported earlier that the number of building permits issued last month increased by 4.8% to 1.080 million units from September's revised total of 1.031 million.
Analysts expected building permits to rise by 0.9% to 1.040 million units in October, which suppressed gold prices by stoking expectations that tighter monetary policy is on the way in roughly a year or possibly sooner.
The report also showed that U.S. housing starts fell by 2.8% last month to hit 1.009 million units from September’s total of 1.038 million units, compared to expectations for a drop to 1.025 million.
Leading Dow Jones Industrial Average performers included Coca-Cola, up 1.59%, Wal-Mart, up 1.36%, and Procter & Gamble, up 0.89%.
The Dow Jones Industrial Average's worst performers included Verizon, down 1.43%, UnitedHealth, down 1.35%, and Microsoft, down 1.07%.
European indices, meanwhile, ended the day largely higher.
After the close of European trade, the Euro Stoxx 50 rose 0.09%, France's CAC 40 rose 0.09%, while Germany's DAX 30 rose 0.17%. Meanwhile, in the U.K. the FTSE 100 fell 0.19%.
On Thursday, the U.S. is to release data on initial jobless claims, consumer prices, existing homes sales and manufacturing activity in the Philadelphia region.