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U.S. stocks finished higher on Wednesday as investors waited on an update on inflation due Friday that could help inform how many more rate hikes to expect from the Federal Reserve.

The S&P 500 index rose about 56 points, or 1.4%, ending near 4,027, according to preliminary FactSet data, the highest close since March 6. That was only days before the collapse of Silicon Valley Bank put a spotlight on risks in the U.S. banking system after the Fed's yearlong stretch of quick rate hikes.

The Dow Jones Industrial Average rose 1% and the Nasdaq Composite Index closed 1.8% higher.

The S&P 500's information technology segment led daily gains for the index, ending up 2.1%, while its financials sector rose 1.5%, according to FactSet. Treasury yields largely were in a holding pattern ahead of Friday's reading of the Personal Consumption Expenditures Price Index, which came in at 5.4% in January, off peak levels but still well above the Fed's 2% target.

-Joy Wiltermuth

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March 29, 2023 16:06 ET (20:06 GMT)

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