The S&P 500 advanced Wednesday after a summary of the Federal Reserve's policy meeting last month reinforced hope for lower rates in the near future.

The broad index added 0.42% to 5,620.85, marking its ninth winning session of the last 10. Wednesday's advance propelled the benchmark within 1% of its all-time record close. Four of the 11 sectors that comprise the S&P 500 notched 52-week highs during the session.

The Nasdaq Composite climbed 0.57% to 17,918.99, also clinching its ninth positive day of 10. The Dow Jones Industrial Average ticked up by 55.52 points, or 0.14%, to finish at 40,890.49 for its sixth winning day of the last seven.

The Russell 2000 outperformed, with the small cap-focused index climbing more than 1%.

Those moves came as Fed officials said a decrease to the borrowing cost during the September policy meeting was increasingly likely, according to minutes from the July gathering released Wednesday afternoon. The majority of participants indicated that loosening monetary policy would be appropriate if data continued to come in as expected.

That bolsters the expectations of market participants, with traders pricing in a 100% chance of a rate cut next month, per the CME Group's FedWatch Tool. Where the Street diverges is on how big the potential reduction will be.

Wednesday's moves come a day after the S&P 500 and Nasdaq Composite snapped their longest winning streaks since late 2023. It was just the latest action in a choppy month for equities.

A weak U.S. jobs report and an interest rate hike from the Bank of Japan sparked a global sell-off on Aug. 5. But equities have since bounced back after strong retail sales and a weaker-than-expected inflation report helped alleviate recession fears last week. Now, all three of the major indexes are up compared to where they started August.

Wall Street now anxiously awaits commentary from central bank leader Jerome Powell. The Fed chair is expected to deliver remarks Friday at the Jackson Hole Economic Symposium, where he could provide further clues into the Fed's next rate decision at its September gathering.

"Everyone's really kind of looking ahead to see what the Fed is going to do next," said Chris Zaccarelli, chief investment officer at the Independence Advisor Alliance. "I think the market, at least temporarily, has pivoted away from growth scares and is back focused on what's going to be the Fed rate cutting cycle."

Investors on Wednesday also kept an eye on the latest earnings reports trickling in. Target jumped more than 11% after reporting earnings for the fiscal second quarter that exceeded Wall Street's expectations. But fellow retailer Macy's dropped almost 13% on a lowered full-year sales forecast.

Stocks finish higher

Stocks ended Wednesday's session in the green.

The S&P 500 and Nasdaq Composite climbed about 0.4% and 0.6%, respectively. The Dow ticked up about 0.1%.

— Alex Harring

American Express slides 3% after analyst downgrade

American Express was down more than 3% in afternoon trading, making it the worst performer in the Dow.

The slide for the financial stock comes after a downgrade from Bank of America. Analyst Mihir Bhatia bumped the stock down to neutral from buy, saying in a note to clients that the signs of a weakening consumer make it hard to see further upside.

"While we maintain a favorable view of Amex's execution and strategy long-term, recent commentary from retailers and travel companies suggests the spending backdrop is challenging, even for the high-end consumer," the note said.

Bhatia also said American Express is trading above its historical average price-to-earnings multiple.

— Jesse Pound

Macy's heads for worst day in nearly a year

Macy's shares sank 12%, putting the department store on pace for its worst daily performance in roughly a year.

If shares close at this level, the company would record its worst day since Aug. 22, 2023, when shares dropped more than 14%.

The decline comes after the company posted mixed quarterly results and slashed its sales forecast as it grapples with pickier shoppers and heightened promotions.

— Samantha Subin

Banks underperform

Bank stocks underperformed Wednesday.

Shares of Citigroup and Wells Fargo were down 1.9% and 1.5%, respectively. Goldman Sachs and Morgan Stanley slid 0.4% each. JPMorgan Chase and Bank of America were each lower by 0.2%.

— Sarah Min

TJ Maxx is 'back in business,' Kevin Simpson says

The consumer and retail environment has normalized enough for strong companies such as TJX to shine, said Kevin Simpson, founder and CEO of Capital Wealth Planning.

"They had gone through multiple quarters post-Covid where they kind of had to catch up to those margins. But now they're back in business. They're growing," Simpson told CNBC.

TJ Maxx can succeed both when consumers are "trading down" to cheaper goods, and when overall spending is strong, Simpson said.

The company's second-quarter report showed that its gross margin and pretax profit margin both ticked up year over year. The company also grew its operating cash flow. The stock was up more than 6% in afternoon trading.

TJ Maxx is a holding in the Amplify CWP Enhanced Dividend Income ETF (DIVO), which is sub-advised by Capital Wealth Planning.

— Jesse Pound

Concerns over earnings moving forward are 'overstated,' says Wolfe Research

Wall Street may have taken an overly grim outlook toward forward earnings revisions over concerns about the U.S. economy, according to Wolfe Research.

"Our sense is EPS estimates for the next two quarters have come down as investors have become worried about the U.S. economy and growth outlook," chief investment strategist Chris Senyek wrote Wednesday. "With growth expectations not falling significantly and the Fed about to begin a cutting cycle starting in September, we believe that this fear is overstated and expect earnings revisions to be flat to up from here."

— Brian Evans

Fed meeting minutes signal September rate cut is probable

Meeting minutes from the Federal Reserve's July policy gathering suggested a rate cut was growing more likely for September.

"The vast majority" of participants at the July 30-31 meeting "observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting," the summary, which was released Wednesday afternoon, stated.

— Alex Harring, Jeff Cox

TJX shares touch record levels

TJX's postearnings rally pushed the stock to a new all-time high on Wednesday.

Shares of the Marshalls and HomeGoods parent climbed more than 6% in midday trading. Wednesday's move came after the discounter posted a strong earnings report and raised its full-year guidance.

TJX shares have jumped more than 28% in 2024. The stock went public in 1987.

— Alex Harring, Christopher Hayes

Stocks making the biggest moves midday

These are the stocks making the biggest moves during midday trading:

• Target — Shares of the retailer surged 12% on second-quarter results that surpassed Wall Street's expectations. The company maintained its cautious outlook but said sales grew roughly 3%.
• JD.com — The U.S.-traded shares of the Chinese e-commerce company fell more than 5% after Walmart confirmed it was selling its stake in the online retailer.
• Macy's — Shares of the department store sank more than 12%. The company slashed its full-year sales outlook as it grapples with more promotions and picky shoppers.

Read the full list here.

— Samantha Subin

Nonfarm payroll revisions could push Fed to cut rates by 50 basis points in September, economist says

Nonfarm payroll revisions data released Wednesday morning could lead the Federal Reserve to make a larger interest rate cut in September, according to Jeffrey Roach, chief economist for LPL Financial.

Market participants are currently divided on if the central bank will lower rates by half a percentage point or a quarter, while largely expecting some sort of drop. Now, Roach said the bigger decrease could be on the table after jobs growth was downwardly revised.

"A deteriorating labor market will allow the Fed to highlight both sides of the dual mandate and investors should expect the Fed to prepare markets for a cut at the September meeting," Roach said. "A weaker-than-expected job market could pave the way for the Fed to cut by a half percentage point in September."

— Alex Harring

Small caps outperform

Small-cap stocks saw outsized gains on Wednesday, regaining some ground amid a tough month.

The Russell 2000 added around 0.7% in late morning trading. By comparison, the broad S&P 500 ticked higher by just 0.2%.

Wednesday's action comes amid a rough period for these stocks. The Russell 2000 has slid more than 3% in August, while the S&P 500 has climbed more than 1.5%.

— Alex Harring

Keysight poised for best session since 2020 following earnings report

Keysight Technologies headed for its best day in more than four years after quarterly revenue topped Wall Street's expectations.

Shares of the technology stock jumped more than 11% in morning trading. If that holds through session close, it will mark the stock's biggest one-day gain since March 2020, when it jumped more than 12%.

Wednesday's jump came after the company said it saw $1.22 billion in revenue during the fiscal third quarter, beating the consensus forecast of $1.19 billion from analysts polled by LSEG. Keysight said to expect between $1.245 billion and $1.265 billion in the current quarter, a range that includes the $1.25 billion estimate from Wall Street.

Despite the rally, shares are down nearly 3% in 2024.

— Alex Harring

Total payroll revision shows largest drop since 2009

The revision of total payrolls following the Labor Department's updated data released Wednesday morning comes out to a decline of 0.5%. That marks the largest downward revision since 2009, according to CNBC's analysis of the data.

— Alex Harring, Jeff Cox

Nonfarm payroll growth revised down by 818,000

The Labor Department said Wednesday that 818,000 fewer jobs were created in the U.S. than was originally reported in the 12-month period through March 2024.

Investors were watching closely for the data, which was released later than anticipated on Wednesday morning, for insights into the health of the labor market. Stocks took a leg up after the data was published.

— Alex Harring, Jeff Cox

Consumer staples stocks hit all-time high

Consumer staples stocks hit an all-time high Wednesday, surpassing its previous record going back to April 2022. It is on pace for a seventh straight gain, a streak the sector has not managed since April 2024.

The S&P 500 sector was higher by 0.5% in midday trading. The leading outperformer in the sector was Target, which advanced more than 13% on the back of its recent earnings beat. Shares of Dollar General and Estée Lauder also rose more than 1% each.

— Sarah Min, Nick Wells

Stock pickers will get 'plenty of opportunities' amid broader participation, BMO says

There will be more than enough opportunities for stock pickers as they enter a seasonally weak period for markets, according to BMO.

September could soon bring another bout of weakness for stocks that at the moment appear to be pricing in an "almost perfect 'outcome'" following this month's rout, Brian Belski, the firm's chief investment strategist, wrote Tuesday.

The strategist expects that means it is time for investors to get selective, especially as the performance in stocks broadens out to the other 493 S&P 500 stocks besides the so-called Magnificent Seven names.

"We do believe that plenty of opportunities still exist beneath the surface particularly considering improving market breadth trends in recent months," Belski said. "However, fundamental dispersion trends suggest that a highly selective investment approach will likely be required to identify these opportunities."

— Sarah Min

Stocks tick higher

Stocks opened Wednesday's session higher.

The Dow added about 0.2% shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite each traded higher by 0.2%.

— Alex Harring

Ford announces change to EV strategy, stock rises

Ford Motor announced several shifts to its electric vehicle strategy on Wednesday:

• Delaying the start of production at a new EV plant, which is currently under construction in Tennessee
• Canceling a planned three-row electric SUV
• Prioritizing hybrid models and electric commercial vehicles

The changes will result in a special noncash charge of $400 million, with potential for additional expenses down the line, Ford said.

Shares of the automaker were up more than 1% ahead of the opening bell.

— Jesse Pound

TJX rises on earnings beat

TJX shares popped more than 3% after beating expectations for earnings and raising full-year guidance.

The Marshalls and HomeGoods parent earned 96 cents per share on $13.47 billion in revenue. Analysts polled by LSEG anticipated just 92 cents in earnings per share and $13.31 billion in revenue.

Despite upping its full-year outlook, the range was still slightly below Wall Street's forecast.

— Alex Harring

Premarket movers: JD.com falls 8%, Texas Instruments rises after upgrade

Here are some of the stocks making notable moves before the bell Wednesday:

• JD.com — Shares of the Chinese e-commerce company fell 8% after Walmart confirmed it was selling its stake in the online retailer.
• Keysight Technologies — The electronics stock jumped 11% after revenue fell less than expected in the firm's fiscal third quarter. Keysight reported $1.22 billion in sales, topping the $1.19 billion expected by analysts, according to LSEG.
• Texas Instruments — The tech stock rose nearly 2% after an upgrade to buy from neutral at Citi.

Click here for the full list.

— Jesse Pound

Coal producers Arch Resources, Consol Energy merge to create Core Natural Resources

U.S. coal producers Arch Resources and Consol Energy agreed Wednesday to merge into a combined company called Core Natural Resources, focused on exporting to global markets.

The combined company will have a market capitalization of $5.2 billion with annual export capacity of 25 million metric tons. The merger is expected to close by the first quarter of 2025.

Arch Resources stock rose more than 3% in early trading, while Consol shares jumped 4%.

Coal has declined dramatically as a share of U.S. power generation over the past 20 years, but is still heavily used in leading economies such as China and India. It also remains a key input in producing steel from blast furnaces.

— Spencer Kimball

Macy's slides after cutting guidance

Macy's dropped more than 8% during Wednesday premarket trading after the retailer slashed its full-year sales outlook.

That overshadowed strong earnings for the second fiscal quarter, with Macy's earning an adjusted 53 cents per share despite analysts polled by LSEG forecasting 30 cents. However, the company reported $4.94 billion in revenue, under the consensus estimate of $5.12 billion.

— Alex Harring, Melissa Repko

Target pops on earnings beat

Target shares were up nearly 14% in the premarket after the retailer posted second-quarter results that beat expectations.

Earnings per share came in at $2.57, while revenue totaled $25.45 billion. Analysts polled by LSEG expected a profit of $2.18 per share on revenue of $25.21 billion.

Target maintained a cautious outlook for the full year.

"While we've been pleased with our performance so far this year, and our view of the consumer remains largely the same, the range of possibilities and the macroeconomic backdrop in consumer data and in our business remains unusually high," Chief Operating Officer Michael Fiddelke told reporters during a call.

— Fred Imbert

Europe stocks open higher

European stock markets opened slightly higher Wednesday, cautiously rebounding after snapping a long winning streak on Tuesday.

The pan-European Stoxx 600 index was 0.08% higher at 8:30 a.m. London time, with sectors mixed. Mining stocks climbed 1.26%, while telecoms dipped 0.2%.

— Jenni Reid

NYU's Damodaran says Amazon is a 'better buy' than Nvidia

If forced to buy a stock today, NYU's Aswath Damodaran would opt for Amazon over Nvidia.

"As an investor, if you wanted to go with the mega tech, I think Amazon is a better buy than Nvidia," the finance professor at NYU's Stern School of Business told CNBC's "Closing Bell: Overtime" on Tuesday.

"It might not play out that way as a trade, but I think given the earnings and the cash flows, if I had to buy a stock now … I would rather own Amazon," he said, adding that Nvidia shares look overvalued.

— Samantha Subin

Stocks on the move in overnight trading

These are the stocks making the biggest moves after the bell:

• Toll Brothers — Shares added 1% after the homebuilding company surpassed Wall Street's earnings expectations in the fiscal third quarter. Toll Brothers also lifted its full-year deliveries guidance.
• Microchip Technology — Shares of the microcontroller maker fell about 2%. The company disclosed in a regulatory filing that it detected "potentially suspicious activity" within its IT systems, which affected some operations.
• Keysight Technologies — The test equipment manufacturing stock popped more than 10%. Keysight posted solid fiscal fourth-quarter guidance on revenue, with the top end of its range surpassing analysts' estimates.

Read the full list here.

— Samantha Subin

Stock futures open flat

Stock futures opened flat Tuesday evening.

Futures tied to the Dow Jones Industrial Average added 15 points. S&P 500 futures and futures tied to the Nasdaq-100 were little changed.

— Samantha Subin