U.S. stocks closed modestly higher Wednesday, buoyed by strength in financials and a late-session lift in commodities, as investors positioned ahead of widely expected shifts in monetary policy.

The Dow Jones Industrial Average rose 146.98 points, or 0.32%, to 45,565.1. The S&P 500 added 15.45 points, or 0.24%, to 6,481.39, while the Nasdaq Composite gained 45.87 points, or 0.21%, to finish at 21,590.1. Small-cap stocks outperformed, with the Russell 2000 climbing 0.71% to 235.95.

Gold futures for December delivery advanced 0.45% to settle at $3,448.50, reflecting renewed demand for hedges against uncertainty. Crude oil futures for October delivery rose 1.09% to $63.94, extending gains on expectations of stronger demand into the fall.

Financials continued to draw investor attention. A research note from Kenneth Leon, Director of Equity Research at CFRA, highlighted that U.S. bank stocks remain among the top performers in the S&P 500 Financials sector. Leon wrote that “higher-than-expected earnings will come from noninterest income areas like asset and wealth management, and capital market areas tied to investment banking, U.S. Treasury services, and trading activities”.

Citigroup, Morgan Stanley, and Goldman Sachs were identified as best positioned to outperform, while JPMorgan Chase and Bank of America may trail peers. The CFRA report also pointed to macro drivers, stating that “anticipation of the Fed cutting rates as early as September 2025 has been a positive signal for investing, trading, and investment banking activity”.

Consumer trends added another layer of support for markets. According to the Bank of America Institute, spending on streaming video and audio services grew more than 10% year-over-year as of July, with on-demand streaming surpassing linear television in total viewership this spring. the report said streaming companies are plowing investment into live sports rights and experimenting with artificial intelligence to secure subscribers.

The combination of resilient consumer activity, optimism over rate policy, and strong performance from bank shares helped equities notch gains despite lingering concerns over valuations. Traders said Wednesday’s session reflected a “wait-and-see” tone ahead of key Fed signals expected in September.