US stocks moved sharply higher over the course of the trading day on Wednesday. With the strong upward move, the S&P 500 closed above 5,600 for the first time ever. The Nasdaq surged 218.16 points or 1.2 percent to 18,647.45, the Dow shot up 429.39 points or 1.1 percent to 39,721.36 and the S&P 500 jumped 56.93 points or 1.0 percent to 5,633.91. The rally on Wall Street was partly due to strength among technology stocks, as reflected by the notable advance by the tech-heavy Nasdaq, which also reached a new record closing high.

During congressional testimony, Federal Reserve Chair Jerome Powell said more good data would strengthen the central bank's confidence inflation is moving sustainably toward its 2 percent target and lead to a potential interest rate cut. Powell also warned of the risk that leaving interest rates at an elevated level for too long could jeopardize economic growth. In light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face, he said. Reducing policy restraint too late or too little could unduly weaken economic activity and employment.

US treasuries showed a lack of direction for much of the day before closing modestly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.0 basis points to 4.280 percent. The dollar index is trading marginally lower at 104.65, awaiting further clarity on Federal rate stance and dollar direction going forward. US inflation data due later in the global day will add to clarity and direction for the counter.

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