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Growth stocks bounce as Treasury yields drop

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Tesla jumps as Citigroup upgrades

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Nordstrom falls on reduced profit forecast

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Dow up 0.4%, S&P 500 up 0.64%, Nasdaq up 1.08%

Nov 23 (Reuters) - Wall Street's main indexes edged higher on Wednesday after minutes from the Federal Reserve's November meeting showed interest rate hikes may slow soon.

A "substantial majority" of policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes, according to the minutes.

"What equity markets needed to see for the recent strength to continue was what we got from the minutes," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

Since the Fed's last meeting on Nov. 1-2, investors have been more optimistic that price pressure has started to ease, signaling smaller rate hikes could curtail inflation.

"What I think you're seeing is renewed investor enthusiasm fueled by those who see that beautiful light at the end of what has been a very dark tunnel. And there has been so much money on the sidelines that is rushing back into the markets and waiting to get back into the action," said portfolio manager Moez Kassam, at Anson Funds.

At 2:51 p.m. ET, the Dow Jones Industrial Average rose 136.27 points, or 0.4%, to 34,234.37, the S&P 500 gained 25.74 points, or 0.64%, to 4,029.32 and the Nasdaq Composite added 121.15 points, or 1.08%, to 11,295.56.11,295.56

Trading volume was thin ahead of the Thanksgiving holiday on Thursday, with the U.S. stock market open for a half-session on Friday.

Earlier in the morning, a mixed bag of economic data led to a drop in yield on the benchmark 10-year Treasury note, helping drive stocks up.

The number of Americans filing new claims for unemployment benefits rose more than expected last week and U.S. business activity contracted for a fifth straight month in November. Consumer sentiment ticked higher and home sales rose above expectations.

Heavyweight stocks, including Amazon.com Inc and Meta Platforms Inc, rose nearly 1%.

Tesla Inc jumped 7.4%, with Citigroup upgrading the electric-vehicle maker's stock to "neutral" from a "sell" rating.

Deere & Co jumped 5.5% after the farm equipment maker reported a higher-than-expected quarterly profit.

Nordstrom Inc fell 4.5% as the fashion retailer cut its profit forecast amid steep markdowns to attract inflation-wary customers.

Advancing issues outnumbered declining ones on the NYSE by a 1.81-to-1 ratio; on Nasdaq, a 1.66-to-1 ratio favored advancers.

The S&P 500 posted 21 new 52-week highs and no new lows; the Nasdaq Composite recorded 82 new highs and 112 new lows. (Reporting by Carolina Mandl, Shreyashi Sanyal and Ankika Biswas; Editing by Anil D'Silva, Richard Chang and Rosalba O'Brien)