The Dow Jones Industrials added to this week’s gains, increasing 279.45 points to open Wednesday at 33.823.79.
The much-broader index continued its upward trajectory, hiking 50.71 points, or 1.2%, to 4,313.16.
The NASDAQ Composite spiked 254.16 points, or 2%, to 13,202.78.
Micron Technology was among the best-performing S&P 500 stocks, gaining more than 4%. Starbucks shares also climbed 6% after an upgrade from JPMorgan, while Dow member Boeing advanced more than 2.9%.
Stocks were rallying in part on signs that a ceasefire could be possible in the Russia-Ukraine war.
Ukrainian President Volodymyr Zelenskyy said a peace agreement was beginning to “sound more realistic” in an address to the nation Tuesday. Russian Foreign Minister Sergey Lavrov told the BBC there was “some hope of reaching a compromise.” Russian State media quoting the Kremlin echoed similar sentiments overnight.
In economic data, consumers continued to spend in February through at a slower pace than expected, according to a Commerce Department report Wednesday. Advance retail sales grew 0.3% for the month, slightly below the 0.4% Dow Jones estimate.
To be sure, all eyes are on the Fed on Wednesday, as the central bank wraps up a key two-day policy meeting.
The Fed is widely expected to raise rates by a quarter-point, the first hike since 2018. Watchers are also expecting the central bank to offer a new quarterly forecast that could indicate five or six more hikes this year.
The Fed is expected to announce an interest rate decision and economic projections at 2 p.m. on Wednesday, which will followed by a briefing from Federal Reserve Chair Jerome Powell.
Treasury prices gained slightly, lowering yields to 2.15% from Tuesday’s 2.16%. Treasury prices and yields move in opposite directions.
Oil prices jumped 84 cents to $97.28 U.S. a barrel.
Gold prices stumbled $13.30 to $1,915.40 U.S. an ounce.