Stock indices closed higher yesterday. The S&P 500 gained 0.56%, the Nasdaq 100 added 0.78%, and the Dow Jones Industrial Average rose by 0.26%.

US equities rallied and sentiment carried into Asia, while Treasuries fell after cautious Fed commentary in the January minutes and solid US data prompted traders to scale back expectations for deep interest rate cuts this year. The 10-year yield climbed to about 4.08%, and the two-year yield, more sensitive to the Fed's policy, rose to a one-week high near 3.46%.

As noted earlier, the January FOMC minutes showed policymakers again voicing concern about inflation. Several officials said the Fed might need to raise interest rates if inflation remains above the 2% target.

BNP Paribas said the minutes support its view that rate cuts are unlikely this year. The bank added that while disinflationary forces may appear in the second half, inflation is still well above 2% and there is no guarantee the Fed will cut later in the year.

Despite that, many market participants are still pricing in two reductions for the year. A string of US data released during the session reinforced the idea of a resilient economy: industrial production posted its biggest monthly gain in nearly a year in January, business equipment orders for December beat forecasts, and housing starts hit a five-month high.

As for the S&P 500 technical analysis, the main goal of buyers is to surpass the immediate resistance level of $6,896. This would confirm further upside and open the way to $6,914. Holding above $6,930 would further strengthen the bulls' case. On the downside, buyers should defend $6,883. A break below that level would quickly push the instrument back to $6,871, which could open the path toward $6,854.