The Dow gained just under half a percent, the S&P 500 added nearly six-tenths and the Nasdaq rose three-quarters of a percent.

Megacap tech stocks provided the biggest boosts to the S&P 500, with shares of Meta Platforms jumping more than three and a half percent - the stock reaching its highest level since September 2021.

Nvidia, which rose more than 2%, hit a record high after fellow chipmaker TSMC beat fourth-quarter revenue expectations.

Mark Luschini is Chief Investment Strategist at Janney Capital Management.

"We're seeing a rotation back into some of last year's leadership with names that propagate communications services, technology, consumer discretionary, really taking the lead. Not surprising, obviously, iconic brands that are expected to deliver pretty good earnings, which we're about to embark on here for the fourth quarter, and in an environment that really hasn't changed a whole lot, that facilitated why they were among the leaders last year, which is to say kind of steady, staid economic activity."

Shares of Boeing rose nearly 1% after tumbling the prior two sessions. CEO Dave Calhoun on Tuesday acknowledged errors by the U.S. plane maker, as more than 170 jets remained grounded for a fourth day due to safety concerns.

DocGo plunged more than 37% after Fuzzy Panda Research revealed a short position on the health services company's stock.

Wednesday marked a watershed moment for bitcoin, as the SEC approved the first U.S-listed exchange traded funds to track the world's largest cryptocurrency.

Investors are awaiting the December consumer and producer inflation reports, due on Thursday and Friday, respectively, which could help determine the Federal Reserve's monetary policy path.

And, on Friday, the unofficial start of earnings season kicks off with banking giants JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. All are expected to report lower fourth-quarter profits.