US stocks regained momentum on Wednesday, as investors assessed hotter-than-expected inflation data and prepared for more on Thursday while looking to Federal Reserve minutes for a window into policymakers' thinking on interest rates.

The Dow Jones Industrial Average (^DJI) finished up 0.2%, while the S&P 500 (^GSPC) gained 0.4%. The tech-heavy Nasdaq Composite (^IXIC) put on roughly 0.7%, building on Tuesday's win.

US wholesale prices rose last month at the fastest pace since April, with the producer price index for September climbing 2.2% from a year earlier, compared with the 1.6% gain expected.

The PPI reading suggests that inflationary pressures remain despite the Fed's aggressive interest rate hikes. The next read on inflation will come in Thursday's look at consumer prices, which are expected to have slowed slightly from last month.

Minutes from the central bank's last meeting released Wednesday confirmed that Fed members saw one more hike in the bank's two remaining meetings this year, but the inflation picture that emerges from this week will fuel expectations for what the bank decides Nov. 1.

Read more: What a Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Meanwhile, Treasury yields continued to retreat from 16-year highs hit during the bond sell-off after Israel stepped up its bombardment of Gaza. The benchmark 10-year (^TNX) yield dropped to trade below 4.6% on Wednesday, compared with last week's peak above 4.88%.

But bonds may not be out of the woods yet, some analysts said, given the lack of weak economic data or a solid reason for yields to keep falling.

More investors are now betting the Federal Reserve won't hike interest rates at its November meeting, as the recent surge in bond yields is seen as effectively doing the tightening work of the central bank.

Potentially lifting some pressure, oil prices continued to slide as the impact on supply from the Middle East conflict appeared contained. Crude oil futures (CL=F) dropped to below $84, while Brent crude futures (BZ=F) were down to finish just above $86.

Also in focus, Birkenstock (BIRK) made its trading debut on the NYSE on Wednesday, sliding more than 10% from its initial price.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance