The Dow Jones Industrial Average closed above 45,000 for the first time Wednesday, while the S&P 500 and Nasdaq Composite extended their record runs as markets assessed the latest remarks by Federal Reserve Chair Jerome Powell.

The Dow rose 0.7% to 45,014, while the technology-heavy Nasdaq jumped 1.3% to 19,735.1. The S&P 500 advanced 0.6% to 6,086.5. Technology saw the biggest gain among sectors, while energy posted the steepest decline.

Powell said the US economy is currently stronger than it seemed in September when the Federal Open Market Committee started easing monetary policy, allowing the FOMC to potentially be more cautious in cutting interest rates further, Reuters reported.

"We can afford to be a little more cautious as we try to find neutral," Powell reportedly said.

Separately, St. Louis Fed President Alberto Musalem said that inflation in the US is expected to ease to the FOMC's 2% long-run target, while "additional easing of moderately restrictive policy toward neutral will be appropriate over time."

The US two-year yield decreased 4.3 basis points to 4.13%, and the 10-year rate fell 3.3 basis points to 4.19%.

In economic news, the US services sector continued to expand in November, with the Institute for Supply Management's data pointing to a slower sequential growth rate, while S&P Global (SPGI) indicated an acceleration.

"The (ISM survey) result does not influence our outlook for continued expansion in consumer spending, particularly on the services side, which will keep the economy humming along," Oxford Economics said.

Employment growth in the US private sector missed Wall Street's estimates in November, while wage growth for job stayers rose for the first time in more than two years, Automatic Data Processing (ADP) reported.

Most Fed districts saw a slight increase in economic activity, while the growth outlook rose "moderately" across the majority of geographies and sectors, the central bank said in its latest Beige Book released Wednesday.

In company news, Salesforce (CRM) shares jumped nearly 11%, the best performer on the S&P 500 and the Dow. Late Tuesday, the customer relationship management platform posted fiscal third-quarter revenue that surpassed the Street's estimates amid gains in subscription and support sales.

Marvell Technology (MRVL) was the top gainer on the Nasdaq Wednesday, up 23%. The semiconductor solutions provider late Tuesday issued an upbeat fiscal fourth-quarter earnings outlook at the midpoint, while its results in the prior three-month period topped market estimates.

Texas Pacific Land (TPL) shares slumped 12%, the steepest decline on the S&P 500.

Foot Locker (FL) slashed its full-year earnings outlook and reported lower-than-expected fiscal third-quarter results amid soft consumer spending trends and the impact of promotional activity. The footwear retailer's shares tanked 8.9%.

West Texas Intermediate crude oil fell 1.6% to $68.84 a barrel Wednesday.

The Organization of the Petroleum Exporting Countries and its allies on Thursday are expected to further delay a planned production increase "amid sluggish demand and fear of oversupply," Saxo Bank said.

Gold rose 0.2% to $2,674.20 per troy ounce, while silver rose 1.1% to $31.84 per ounce.