Dow closes within 100 points of 20000 after Fed minutes are released - CNBC

Equities have rallied significantly since Trump's win, amid the prospects of fiscal stimulus and tax cuts. Rob Lutts, chief investment officer at Cabot Wealth Management, said he believes the U.S. bull market can continue under Trump. "Maybe we're on the sixth or seventh inning," he said. "I think President-elect Trump is extending that."

That said, Mike Bailey, director of research at FBB Capital Partners, said "I do think there are some stocks with rising execution risk," meaning that certain stocks could fall if Trump does not deliver.

Mortgage applications tanked 12 percent for last week, from two weeks earlier as rising interest rates weighed.

Meanwhile, Fiat Chrysler, Ford Motor and General Motors all reported better-than-expected auto sales for December, sending their stocks higher. U.S. auto sales for December came in much stronger than expected, with a pace of 18.4 million, versus an estimate of 17.7 million.

"You add that with yesterday's ISM manufacturing number, which was the best in a few years, and you've got a case for strong economic growth, not just domestically but globally," said Bruce Bittles, chief investment strategist at Baird.

Investors also kept an eye on the U.S. dollar, which pulled back from its highest levels in 14 years. The greenback traded 0.6 percent lower against a basket of currencies, with the euro near $1.048 and the yen around 117.3.

Lukman Otunuga, research analyst at FXTM, said in a note that "dollar strength may become the new norm this quarter as the combination of repeatedly positive economic data and prospects of higher US rates attract investors to the currency."

"With the Trump effect still fuelling the bull rally and optimism rising over fiscal stimulus boosting US economic growth, the Dollar may be destined to be a champion amongst other major currencies once again," he said.

Japanese equities soared on the back of the dollar's weakness and strong domestic economic data. The Nikkei 225 skyrocketed 2.51 percent, while the Topix spiked 2.37 percent.

U.S. Treasurys rose after the Fed minutes were released, with the benchmark 10-year yield at 2.435 percent, while the short-term two-year note yield slipped to 1.222 percent. Yields had traded higher earlier in the session.