Major U.S. stock indexes edged higher Wednesday as concerns around the consequences of a strong economic recovery, marked by inflation, continued to buffet the market.

The S&P 500 rose 0.2% in recent trading, with the index fluctuating above and below the flatline during the session’s opening hour. Both the Dow Jones Industrial Average and Nasdaq Composite also waffled, both rising about 0.1%.

Tech stocks, specifically chip makers, led the market higher. Modest advances among energy, healthcare, and some consumer-staple stocks aided the benchmarks’ climb, while material and consumer discretionary stocks slipped.

The market’s more seismic moves were concentrated around a handful of stocks popular with individual investors, including AMC Entertainment and BlackBerry. Both of those stocks are on a tear again after surging earlier this year.

The major indexes, which are hovering close to all-time highs on the back of unprecedented fiscal and monetary support, are struggling for traction this month as investors look for ways to justify the high valuations already commanded by many stocks. On Tuesday, manufacturing data pointed to an expansion in factory activity driven by demand for goods, but also highlighted growing supply bottlenecks.

“It is going to be more and more difficult for markets to surprise to the upside,” said Willem Sels, global chief investment officer at HSBC Private Bank. “The tide that lifted all boats isn’t as strong anymore.”

Companies that are more sensitive to the economy, such as banks and firms powered by consumer spending, are likely to perform well, according to Mr. Sels. He also favors stocks that will benefit from government spending on infrastructure and sustainability. Concerns that the Fed may pare back on quantitative easing measures due to inflation pressures are likely to continue prompting unease in markets, he added.

“There will be data points coming out in the coming weeks that will be very strong, and they will point to inflation pressures,” Mr. Sels said. “More and more people will be wondering if the Fed will stick to its position or change, and that will inevitably lead to volatility.”

Dogecoin jumped after Coinbase Global said it would allow users to trade the currency on a platform geared toward more experienced investors. The cryptocurrency initially founded as a joke rose 26% from its Tuesday 5 p.m. ET level to 43 cents, according to CoinDesk.

In bond markets, the yield on the 10-year U.S. Treasury note edged lower to 1.607%, from 1.613% Tuesday. Yields drop when bond prices climb.

Investors are also monitoring surging commodity prices, which are feeding into those inflation concerns and weighing on sentiment, said Esther Baroudy, a senior portfolio manager at State Street Global Advisors.

“You have got a very, very big recovery going on and it is pushing up prices everywhere for basic commodities,” she said. “A lot of it is driven by a roaring economy in the U.S. The manufacturing side of the economy, for example, is absolutely on fire.”

A trader worked on the floor of the New York Stock Exchange on Tuesday.

A trader worked on the floor of the New York Stock Exchange on Tuesday.

Photo: Nicole Pereira/Associated Press

Brent crude, the international energy benchmark, rose 1% to $70.96 a barrel, extending gains after OPEC forecast a rebound in demand.

The Fed’s beige book report, due at 2 p.m. ET, will offer a view on how businesses are faring and the current economic condition. Investors will be looking for insights into how companies are coping with rebounding consumer demand and supply bottlenecks.

Overseas, the Stoxx Europe 600 edged up 0.1%. Major Asian stocks were mixed. Japan’s Nikkei 225 rose 0.5%, while Hong Kong’s Hang Seng Index fell 0.6%. In mainland China, the Shanghai Composite Index fell 0.8%.

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—Michael Wursthorn contributed to this article.

Write to Will Horner at William.Horner@wsj.com