A rebound in shares of technology companies helped push the $S&P 500 index(.SPX.US)$ and $Nasdaq Composite Index(.IXIC.US)$ higher Wednesday, as investors shrugged off concerns about elevated inflation.

The S&P 500 rose by 10.76 points, 0.2%, to close at 4701.46. The Nasdaq Composite gained 70.09 points, or 0.4%, to end at 15845.23. The $Dow Jones Industrial Average(.DJI.US)$, in contrast, lost 9.42 points, or less than 0.1%, to finish at 35804.38.

U.S. stocks have swung between gains and losses this week as investors have digested a slew of data in a trading week shortened by the Thanksgiving holiday. On Wednesday, new figures showed that household spending rose 1.3% in October from a month earlier, while personal income increased 0.5%. Weekly jobless claims, meanwhile, fell sharply to the lowest level in 52 years.

Yet other data released Wednesday complicated the picture of the U.S. economic recovery. Consumer sentiment in the U.S. fell to its lowest level in a decade, data from the University of Michigan showed. Meanwhile, an inflation gauge, the core personal consumption expenditures price index, rose 4.1% from a year ago, the most since 1991. The index is the Fed's preferred measure of inflation and excludes volatile food and energy prices.

At the same time, minutes released Wednesday from the Federal Reserve's November meeting provided fresh context about how central bankers are assessing the inflation situation. The minutes signaled that while officials generally anticipate that the inflation rate will diminish significantly during 2022, some also highlighted that price increases had become more widespread.

"Many participants pointed to considerations that might suggest that elevated inflation could prove more persistent," the minutes said.

Earlier this month, Fed officials confirmed plans to shrink the central bank's monthly bond purchases. Wednesday's minutes from that meeting showed that some officials noted that, if inflation continues to surge, the Fed should be prepared to adjust the pace of the asset purchases and raise the target range for the federal funds rate sooner than officials anticipated.

U.S. stock indexes struggled to find direction after the minutes were released. They initially fell before turning higher. Stock trading will be closed Thursday.

Jamie Cox, the managing partner for Harris Financial Group, said before the minutes were released that recent strong economic data could spur the Fed to accelerate its timeline for tightening monetary policy. If that is the case, he said, cyclical stocks "could really get some legs under them." Cyclical stocks tend to outperform their growth counterparts during periods of rising interest rates.

On Wednesday, however, growth and technology stocks were a bright spot in the market. Chipmakers $Advanced Micro Devices(AMD.US)$ and $NVIDIA(NVDA.US)$ extended their recent climb. AMD added $7.88, or 5.3%, to end at $157.80. Nvidia gained $9.28, or 2.9%, to close at $326.74.

The yield on the benchmark 10-year Treasury note ticked down to 1.644% Wednesday, from 1.665% Tuesday. Yields move inversely to prices.

In corporate news, $Nordstrom(JWN.US)$ tumbled, losing $9.27, or 29%, to close at $22.66. $Gap Inc(GPS.US)$ fell by $5.67, or 24%, to end at $17.84. Both retailers reported disappointing earnings due to supply-chain issues late Tuesday.

Even as inflation and fresh coronavirus lockdowns weigh on investors' minds, many say there are few places outside of the stock market for large, consistent returns. The S&P 500 is up 25% year-to-date and is just 0.1% away from its all-time closing high.

We have had fantastic earnings; the bond market is behaving itself; inflation is up, but rates are very low. As I sit here with five to six weeks left to the year, I have a hard time not being optimistic. As long as rates are low and earnings are growing, I think it's very difficult not to lean into stocks."

-said Tim Holland, chief investment officer at Orion Advisor Solutions

In commodity markets, Brent crude, the international oil benchmark, fell 0.1% to $82.25 a barrel. Crude prices have shown limited response to the U.S.'s plan to release 50 million barrels of oil from its strategic stockpiles.

The Stoxx Europe 600 edged up 0.1%. The pan-continental index suffered its biggest one-day drop Tuesday in almost two months amid fresh Covid-19 lockdowns in parts of Europe.

"Even though economies seem to be on a good footing, we are still living with this awful pandemic and we will continue to see this two-step-forward, one-step-back approach in terms of continued lockdowns," said Mr. Holland.

In Asia, stock markets were mixed. In Japan, the Nikkei 225 fell 1.6%, while in Hong Kong, the Hang Seng Index edged up 0.1%. In mainland China, the Shanghai Composite Index rose 0.1%.