Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles.

The Dow Jones Industrial Average rose 207.39 points to 25,539.57, while the advanced 0.8% to 2,826.15. The Nasdaq Composite closed 0.6% higher at 7,575.48. The Dow surged more than 500 points on Tuesday — its second-best day of the year —after Fed Chair Jerome Powell opened the door to rate cuts.

Powell said the central bank will keep an eye on current developments in the economy, and would do what it must to "sustain the expansion."

"The Fed is being very accomodative and they seem to be moving in that direction," said Tobias Carlisle, founder of Acquirers Funds. "They're inclined to cut rates by 75 basis points by the end of the year; I think it will be 25 by the end of the year, depending on what happens with Mexico and other things like that."

Tech shares jumped 1.4% while the utilities and real estate sectors got a boost from lower rates. Apple contributed to tech's gains, rising 1.6% after CEO Tim Cook said the company had not been targeted by China amid rising U.S.-China trade fears. Salesforce, meanwhile, rose 5.1% on stronger than expected earnings.

The consumer staples sector also rose more than 1%, led by an 8.6% rally in Campbell Soup. The stock popped on quarterly numbers that topped Wall Street estimates.

Worries over the economy increased recently amid weakening economic data and persisting trade tensions.