NEW: Wall Street closes higher as investors monitor recovery

A choppy day of trading on Wall Street ended with stocks closing higher Wednesday, reversing much of the S&P 500′s modest pullback the day before.

The benchmark index ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500′s gains were tempered by declines in health care, technology and other stocks.

Smaller company stocks continued to outgain the rest of the market as they’ve done all year. Treasury yields mostly edged higher.

Markets have been bumpy during the last few days as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

“That’s just going to be the state of the market environment for some time to come,” said Kristina Hooper, chief global market strategist at Invesco.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years old Wednesday, gained 10.59 points, or less than 0.1%, to 34,323.05. The blue-chip index swung between a gain of 97 points and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 index of smaller companies gained 43.52 points, or 2%, to 2,249.27.

The S&P 500 hit an all-time high May 7 but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1%.

Investors bid up shares in several retailers that delivered strong quarterly report cards. Dick’s Sporting Goods jumped 16.9% after reporting a surge in first-quarter sales and solid earnings as team sports returned. Urban Outfitters rose 10%, and Abercrombie & Fitch climbed 7.8% on similarly strong financial results.

Retailers, hotels and cruise lines are poised for growth as more people get back to some semblance of normal with vaccinations increasing and the pandemic seemingly receding.

The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021, and results from the beginning of the year will give Wall Street a clearer picture moving forward.