Stocks inched higher on Wednesday as the stock market continued its upward momentum with the S&P 500 nearing an all-time high close. However, the benchmark index fell short of reaching a new record, leaving investors eagerly awaiting further market drivers.

The Dow Jones Industrial Average led gains, adding 0.3%, while the tech-heavy Nasdaq Composite and the S&P 500 both posted modest gains of over 0.1%. With all three major averages boasting double-digit gains for the year, market sentiment remains positive.

Investors have been keeping a close eye on the markets, hoping for an extension of the two-month rally. The S&P 500 is on track to record its ninth consecutive week of increases, marking its strongest performance since 2004. Since November 1, the index has gained roughly 13%.

The recent surge in stock prices can be attributed to investors' increased anticipation of a rate cut by the Federal Reserve in March, along with decreasing inflation that is moving closer to the central bank's target of 2%. Moreover, market participants have not witnessed any substantial signs indicating an imminent full-on economic slowdown in the United States.

Throughout the week, the news flow has done little to alter this prevailing narrative as equity prices have gradually climbed higher. The stock market seems to be sustaining itself, propelled by the positive sentiment built upon expectations of a supportive monetary policy.

Meanwhile, Treasury yields have remained steady, hovering close to levels not seen since July. On Wednesday, the 10-year Treasury yield fell by nearly 10 basis points to 3.79%, further reinforcing the belief that market participants are banking on a dovish monetary stance.

As the shortened trading week progresses, investors eagerly anticipate any potential catalysts that could provide further direction to the markets. With impressive gains recorded so far this year, market participants are hopeful that the positive momentum can be sustained as they navigate the ever-changing landscape of global financial markets.

Disclaimer: The stock market is subject to various risks, including market fluctuations and economic uncertainties. Investors are advised to conduct thorough research and seek professional advice before making any investment decisions.