US stocks climbed for a third consecutive day on Wednesday as investors shrugged off AI concerns and digested Federal Reserve minutes suggesting potential rate cuts. The S&P 500 (^GSPC) gained 0.6%, the Nasdaq Composite (^IXIC) rose 0.8%, and the Dow Jones Industrial Average (^DJI) added 0.3%. Technology stocks rebounded after a turbulent stretch that saw software names take significant losses.

Fed minutes from the January meeting revealed policymakers were divided, with some advocating for holding rates steady while others indicated cuts could be appropriate if inflation declines further. The minutes stated that "several participants commented that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation were to decline in line with their expectations." Markets are currently pricing in at least two rate cuts this year, with traders assigning a 93% probability of no change at the March meeting.

Energy stocks outperformed, gaining more than 1% amid a surge in oil prices driven by geopolitical tensions and AI-fueled economic expansion. Meanwhile, DoorDash (DASH), eBay (EBAY), and Analog Devices (ADI) reported earnings Wednesday. The market's resilience suggests investors are becoming more comfortable with AI's long-term impact on business models and corporate competition.