The Dow, however, shed roughly a tenth of a percent, while the S&P 500 and Nasdaq each added about that much.

Treasury yields have retreated sharply since the benchmark 10-year Treasury note topped 5% in late October, as comments from Fed officials and softer labor data led to growing expectations the central bank had reached the end of its rate-hiking cycle.

That has fueled a rally for the S&P 500 and Nasdaq, but Anna Rathbun, Chief Investment Officer at CBIZ Investment Advisory Services, says the stock market gains could ironically prompt the Fed to raise rates again.

"The problem is that when yields fall and markets go up because everyone is happy that the Fed may be done raising rates, that actually loosens liquidity conditions, yields fall, and stocks go up. It means the liquidity is getting much better. That is the very opposite of what the Fed is trying to achieve, which is to tighten liquidity conditions. So actually these market rejoicings actually increase the chance that the Fed will raise rates in December. So that is how this is a Catch-22. In some ways, we have to tell the markets don't react that way. Then the Fed can accomplish what they're trying to achieve."

In earnings news, shares of Warner Bros Discovery plunged 19% after the media and entertainment conglomerate said Hollywood strikes and a weak advertising market could hurt 2024 earnings, weighing on peer Paramount Global, which fell almost 8%.

Shares of Take-Two Interactive Software jumped more than 5% after the company said it would release a trailer early next month for the latest installment in its best-selling "Grand Theft Auto" videogame franchise.

And electric vehicle maker Lucid Group stumbled more than 8% after trimming its production forecast.