The S&P 500 snapped a three-session losing streak as a pause in crude oil's sharp advance helped alleviate inflation worries, with traders continuing to assess the Federal Reserve's interest rate trajectory. The benchmark index rose 0.5%, with 10 of its 11 major sectors closing in positive territory, led by materials and communication services, while real estate was the sole laggard.

The tech-heavy Nasdaq 100 climbed 0.2%. Dell Technologies shares surged 16%, marking their biggest one-day gain since May 29, after the technology company lifted its full-year revenue outlook.

US equities have faced pressure recently, weighed down by renewed tensions between the US and Iran over control of the Strait of Hormuz after a brief lull, which pushed oil prices higher and fueled concerns that the conflict could become prolonged. US crude prices steadied near $90 a barrel on Wednesday, while bond yields pulled back. Overall market sentiment, however, remained relatively calm. As of Wednesday, the S&P 500 had gone 25 consecutive sessions without a single-day decline of at least 1%.

Traders also parsed US economic data showing that American companies added jobs at a more moderate pace in August, signaling a stable labor market. Bill Adams, chief US economist at Fifth Third Commercial Bank, noted, "The ADP figures came in below expectations, underscoring downside risks to Friday's government payrolls report."

Energy stocks were broadly flat on Wednesday. Chevron plans to invest $7 billion over the next five years through joint ventures to more than double its crude output in Venezuela.

By the close, the S&P 500 advanced 0.5% to 7,666.60 points. The Dow Jones Industrial Average added 0.6% to 53,061.95 points. The Nasdaq Composite gained 0.5% to 26,217.83 points. The Nasdaq 100 rose 0.2% to 29,143.33 points, and the Russell 2000 climbed 1.1% to 2,953.166 points.