NEW YORK, New York - U.S. stock markets shot higher Wednesday, ahead of Nvidia's latest earning results,. All of the major indices closed higher, with the Standard and Poor's 500 hitting a new record high.

"Interest rates are on the cusp of being lowered, and earnings are trending higher. In aggregate, inflation, interest rates and earnings trends support a risk-on bias," Terry Sandven, chief equity strategist at U.S. Bank Asset Management told CNBC Wednesday.

The Dow Jones Industrial Average posted a solid advance, climbing 147.16 points, or 0.32 percent, to close at 45,565.23. The blue-chip index's gain was fueled by strong performances in industrial and financial components.

The S&P 500, a broad barometer of the U.S. stock market, added 15.46 points, or 0.24 percent, finishing the session at 6,481.40. The benchmark index's move higher was supported by a rally in energy shares alongside stable tech earnings.

The NASDAQ Composite, which is heavily weighted toward technology stocks, rose 45.87 points, or 0.21 percent, to end at 21,590.14. The tech-heavy index continued its impressive run, inching closer to new milestones.

The day's advance was characterized by a measured and steady climb rather than a sharp rally, suggesting a confident market.

"Today's action is a continuation of the grind higher we've been seeing," said Michael Corty, senior market analyst at Sterling Capital. "It's not explosive, but it's persistent. The market is patiently pricing in a 'goldilocks' scenario of steady growth and contained inflation."

U.S. Dollar Shows Mixed Performance Wednesday Amid Quiet Trading Session

The U.S. dollar traded in a mixed fashion against its major rivals on Wednesday, as currency markets digested a slew of recent economic data and looked ahead to key central bank announcements. Trading was characterized by modest moves as investors sought clearer directional cues.

The euro saw a slight retreat, with the EUR/USD pair edging down 0.09 percent to trade at 1.1632. The US dollar lost ground against its Canadian counterpart, with the USD/CAD pair falling 0.34 percent to 1.3791 as strengthening oil prices provided support for the commodity-linked loonie.

The greenback also softened against the Swiss franc, a traditional safe-haven asset, with USD/CHF dipping 0.07 percent to 0.8025.

However, the dollar found strength against the Japanese yen on Wednesday. The USD/JPY pair advanced 0.11 percent to 147.48, hovering near multi-decade highs as the wide interest rate differential between the US and Japan continued to favor the dollar.

The British pound was a notable outperformer, building on recent gains. GBP/USD climbed 0.14 percent to break above the 1.3496 level, buoyed by renewed investor optimism.

In the Pacific, the Australian dollar capitalized on a weaker greenback, with the AUD/USD pair rising 0.21 percent to 0.6507. The New Zealand dollar, meanwhile, was virtually unchanged, with NZD/USD inching down a marginal 0.01 percent to 0.5859.

Market analysts suggest the currency market is in a holding pattern, with participants cautiously awaiting the European Central Bank meeting on Thursday and the U.S. Federal Reserve's preferred inflation data later in the week for their next major directional moves.

"Today's price action reflects a market that is pausing for breath," Clara Mendez, a senior currency strategist at GlobalFX Advisors said Wednesday. "The significant moves are on hold until we get more clarity on the future path of interest rates from the world's most influential central banks."

Global equity markets struggle on Wednesday with major falls in mainland China and Hong Kong

The global markets presented a mixed picture on Wednesday. Asian markets were predominantly lower, led by significant losses in China and India, while UK, European and Canadian markets showed slight gains and losses. The Pacific region was mixed.

Regional Breakdown

• UK and Europe: Mixed to slightly negative. The DAX (Germany, -0.44%) and FTSE 100 (UK, -0.11%) were in the red, while the CAC 40 (France, +0.44%) and EURO STOXX 50 (+0.17%) managed gains.

• Asia: Mostly lower Wednesday. Heavy losses in China and Hong Kong dragged the region down, though Taiwan, South Korea (+0.25%), and Indonesia (+0.38%) posted gains.

• Pacific: Mixed. Australia's indices (ASX 200, +0.28%) edged higher, while New Zealand's market (NZX 50, -0.74%) fell significantly.

• Middle East: Positive. Israel's TA-125 (+0.16%) and especially Egypt's EGX 30 (+0.90%) finished the day higher.

• Canada. Canada's main stock index too joined the upward trend. TheS&P/TSX Compositegained 93.12 points, or 0.33 percent, to close at 28,433.00, buoyed by strength in the materials and energy sectors as commodity prices held firm.

Key Losers (Biggest Declines)

1. Shanghai Composite (000001.SS): -1.76% (-68.03 points)

   • This was the worst-performing major index in this dataset, indicating significant selling pressure in Chinese equities.

2. Hang Seng Index (^HSI): -1.27% (-323.16 points)

   • Hong Kong's market also saw heavy losses, often moving in tandem with mainland Chinese markets.

3. S&P BSE SENSEX (^BSESN): -1.04% (-849.37 points)

   • A sharp decline for India's benchmark index, representing a notable down day.

4. FTSE/JSE All Share (^JN0U.JO): -0.97% (-56.19 points)

   • South Africa's market ended the day notably lower.

5. NZX 50 (^NZ50): -0.74% (-96.14 points)

   • New Zealand's market was a laggard in the Pacific region.

Key Gainers

1. EGX 30 (^CASE30): +0.90% (+317.90 points)

   • Egypt's market was the top performer, showing strong bullish momentum.

2. Taiwan Weighted Index (^TWII): +0.88% (+214.80 points)

   • A solid gain for Taiwan's stock market, outperforming its regional peers.

3. CAC 40 (^FCHI): +0.44% (+34.12 points)

   • France's benchmark index led the gains among the major European indices.

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