US Stocks end flat after Fed minutes (ext)

NEW YORK (CNNMoney) -- U.S. stocks ended little changed Tuesday, as investors weighed hawkish meeting minutes from the Federal Reserve.

The Dow Jones industrial average (INDU) fell 6 points, or less than 0.1%, to close at 12,394. The S&P 500 (SPX) slipped less than 1 point to 1,332; the Nasdaq Composite (COMP) edged up 2 points to 2,791.

Stocks were supported by gains in semiconductor companies after Texas Instruments (TI) announced a $6.5 billion bid for rival National Semiconductor (NSM). Shares of National Semiconductor surged 72%.

But the market came under pressure after meeting minutes from the Federal Reserve raised speculation that the U.S. central bank could raise rates later this year amid rising inflation.

"A few participants indicated that economic conditions might warrant a move toward less-accommodative monetary policy this year," read the minutes -- that's Fed-speak for raising interest rates or selling assets to try to curb inflation.

Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams, said the minutes showed that some Fed officials are "starting to get a little hawkish."

The minutes confirmed that the Fed will wind down its asset buying program in June, as expected, and fueled speculation that it will hike interest later this year, Rovelli added.

"If commodity prices dip, then they'll be forced to start tightening," he said. "And when they do that, its bad for the market, even though rates are still low."

Meanwhile, investors were also spooked by a surprise interest rate hike by The People's Bank of China and another downgrade of Portugal's sovereign debt.

Looking ahead, many investors are expecting the European Central Bank to announce plans to increase interest rates on Thursday.

The dollar rose against the euro and the Japanese yen, but fell against the British pound.

Crude oil for May delivery slipped 13 cents to $108.34 a barrel.

Gold futures for June delivery surged $21.60 to another record high of$1,450.01 an ounce in non-inflation adjusted terms.