The Dow Jones Industrial Average rose 38.78 points, or 0.11 percent, to 34,128.05. The S&P 500 added 11.47 points, or 0.28 percent, to 4,147.6. The Nasdaq Composite Index increased 110.45 points, or 0.92 percent, to 12,070.59.
Nine of the 11 primary S&P 500 sectors ended in green, with communication services and consumer discretionary both up 1.16 percent, outpacing the rest. Energy and health care, however, dipped 1.78 percent and 0.51 percent, respectively.
The U.S. Commerce Department reported Wednesday that sales at U.S. retailers surged 3 percent last month, the biggest increase in nearly two years. Economists polled by Reuters had forecast sales would increase 1.8 percent.
The data came one day after a hotter-than-expected January U.S. consumer price index report.
The latest economic data added to the risk that the Federal Reserve may have to continue tightening to ease price pressures, according to analysts.
Top Fed officials have recently stressed that more needs to be done to curb inflation.
New York Fed President John Williams said on Tuesday the Fed still has a way to go to get inflation back down to its 2 percent target.
Dallas Fed President Lorie Logan said that the central bank must remain prepared to continue rate increases for a longer period than previously anticipated.
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