US stocks closed higher to record their sixth gain in seven sessions after muted trading on Tuesday, buoyed by gains in technology shares and expectations the Federal Reserve will cut interest rates next week.
Equities declined amid soft data on the manufacturing sector, a jump in US Treasury yields as Japanese bond yields surged, and a drop in bitcoin and crypto-related stocks.
But with a dearth of economic data for the session, the rise in bond yields eased and bitcoin rebounded, which enabled stocks to recover somewhat as the focus shifted to the Fed.
According to preliminary data, the S&P 500 gained 16.05 points, or 0.25 per cent, to end at 6,828.68 points, while the Nasdaq Composite gained 136.36 points, or 0.59 per cent, to 23,412.28.
The Dow Jones Industrial Average rose 188.18 points, or 0.40 per cent, to 47,477.51.
Crypto stocks advanced, including Strategy, up 5.8 per cent, and Coinbase, up 1.3 per cent, as bitcoin prices rebounded after its largest dollar loss since May 2021 in the previous session.
Among S&P 500 sectors, tech led gains on the S&P 500, fuelled by gains in megacaps Apple, Nvidia and Microsoft of about 1 per cent each, while Intel shares jumped.
US economy appears to be cooling
Recent data has pointed to a gradually cooling US economy, and policymakers have urged caution on interest rate cuts, warning that inflation pressures could be rekindled. But comments from several Fed officials in recent days sent market expectations for a rate cut at the central bank's December meeting soaring.
Friday's release of the Personal Consumption Expenditures Index, the Fed's preferred inflation gauge, could further solidify expectations for the central bank's policy call next week.
Markets were also eyeing who may succeed Fed Chair Jerome Powell when his term ends next year, with reports suggesting White House economic adviser Kevin Hassett is a top contender. US President Donald Trump said on Tuesday he would announce his selection early next year.
