The benchmark S&P 500 and the Nasdaq hovered near record highs on Wednesday as investors were increasingly confident that the Federal Reserve could restart its monetary policy easing cycle next month.

All three major stock indexes finished higher on Wednesday, with the S&P 500 and Nasdaq Composite climbing to fresh records despite bouts of weakness, as traders boosted the chances of 2025 interest-rate cuts.

U.S. stocks advanced to mark new record closes on Wednesday, while the Dow Jones (DJI) ended just 91.77 points away from its record close, as a rally sparked by heightened expectations for Federal Reserve rate cuts continued.