The Dow rose 0.7%, or more than 325 points. The S&P 500 gained 0.1% and the tech-heavy Nasdaq composite traded nearly flat, trimming stronger gains. The S&P 500 and the Nasdaq closed at record highs on Tuesday as traders pushed rate-cut odds to 99% for the Federal Reserve's September meeting following July inflation and employment data.

Stocks are poised to open higher on Wednesday as the market looks to extend a rally that has pushed major indexes back to record-high levels.