U.S. stocks closed higher on Wednesday, buoyed by the release of minutes from the Federal Reserve's recent policy meeting.

The Dow Jones Industrial Average surged approximately 462 points to finish at 41,175.08, while the S&P 500 and Nasdaq Composite also saw significant gains, rising 1.15% to 5,634.61 and 1.47% to 17,877.79, respectively.

This upward trend followed remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium, which hinted at potential interest rate adjustments.

Powell emphasized that the Fed might be ready to ease interest rates, focusing on data-driven decisions without committing to a specific timeline.

The minutes from the July Federal Open Market Committee meeting reinforced investor expectations for a possible interest rate cut at the upcoming September meeting, citing progress in disinflation.

Market sentiment showed slight improvement, with the CNN Money Fear and Greed index remaining in the 'Neutral' zone, registering a reading of 52.9.

All sectors in the S&P 500 closed positively, with consumer discretionary, information technology, and real estate sectors experiencing the most significant gains.

Tech stocks notably increased, with shares of Tesla and NVIDIA both rising over 4.5%, as investors anticipated benefits from a lower interest-rate environment.

In corporate news, Target Corporation reported better-than-expected second-quarter earnings and raised its fiscal year 2024 earnings per share outlook.

Workday's shares surged 12.5% after reporting strong second-quarter earnings, while Ross Stores also posted better-than-expected earnings after the market closed.

Looking ahead, investors are eager for upcoming earnings reports from companies such as BJ’s Wholesale Club Holdings, Inc., Williams-Sonoma, Inc., and Intuit Inc.

In contrast, shares of Macy's, Inc. dropped approximately 13% due to disappointing quarterly sales results.