U. S. stocks rose early Wednesday as investors looked forward to the minutes of the Fed meeting for clues to the pace of future interest rate hikes.

The Dow Jones Industrial average rose 130.75 points. The s & p 500 index rose 0.5% and the Nasdaq composite index rose 0.7%. The dollar index fell 0.7 per cent to 106.41.

Investors are waiting for the minutes of the Fed's latest meeting to understand the Fed's monetary policy policy ahead of its December meeting.

In early November, the Fed raised interest rates by 75 basis points for the fourth time in a row, bringing them to their highest level since 2008. Economists expect interest rates to rise by 50 basis points in December and even less next year.

In addition, investors will analyze the latest data on unemployment claims. Economists had expected initial jobless claims to be 225000 in the week ended Nov. 19, up slightly from 222000 the week before.

Eugene Profit, chief executive of Profit Investments, said investor optimism was driving the stock market higher. Before the Fed's next meeting, I think the Fed's language may be milder and I think investors will remain optimistic and ignore many of the disadvantages in the market, "he added.

Bank of America Corporation will remain bearish on risky assets in the first half of 2023, according to a report by strategist Michael Hartnett. But as attention shifts from inflation and interest rate shocks to recession Xiaobai Maimai Inc shocks, that view is likely to turn optimistic in the second half of the year.

Bank of America Corporation predicts that there will be a mild recession in the United States next year, and that the Federal Reserve will act in June or July, which will be the most optimistic outcome for Wall Street, while the loosening of the financial environment will lead to a new bull market in stocks and corporate bonds between the second half of 2023 and 2024.

SoFi's Liz Young said she expects the stock market to rebound in a bear market again. "I think we've met several times in this downward market. Unfortunately, I do think this is another bear market rally. "

In addition, given the challenges facing consumer spending during the holiday season this year, the head of investment strategy at SoFi does not expect a Santa Claus-style rebound in the future.