Mega-cap tech led the market higher Wednesday as the yield on the 10-year Treasury note slipped. CPI data showed prices rising in September.
"We are gaining confidence in a sharper deceleration but the timing is more uncertain," strategists led by Michael Wilson said.
The senators still have to vote but it seemed markets found reasons to be optimistic after averting what would have been a financial crisis.
"Investors just want to fast forward past the debt ceiling drama and focus on the global economic recovery," Edward Moya of Oanda said.
The 10-year US Treasury yield dipped around 1.1 basis points to 1.525% after rising to its highest since the end of June.
The debt crunch of the beleaguered Chinese firm has roiled global markets in the past week and has been reignited after its Thursday deadline passed.
US stocks wavered on Tuesday, struggling to come back from the Evergrande-driven sell-off in the previous session.
Investors are closely watching the two-day meeting of the FOMC for clues from Fed officials on the timing and pace of tapering of asset purchases.
Crypto exchange Coinbase is planning to raise $1.5 billion via a bond sale in order to fund future projects.
"This reinforces our belief that in the event of a well-deserved pullback, it would be an opportunity to buy at cheaper prices," a strategist said.
"There could be a partial assessment of the economic situation," an analyst said. "The transitory inflation mantra should be reiterated."
The materials, energy, industrials, and financial sectors outperformed on Tuesday.
"We think Amazon remains in a solid position, with US retail growth likely above industry growth rates," BofA analysts said.
"Financial markets are plagued by many uncertainties," Rob Sechan of NewEdge Wealth said. "Investor convictions appear to be very shallow."
"The market appears ready to take on a more defensive character as we experience a meaningful deceleration in earnings and economic growth," Morgan Stanley strategists said.
"This morning's beat on jobless claims is a real bright spot," Cliff Hodge of Cornerstone Wealth said.
US stocks jumped to new records to start the week. Facebook was handed a big win by a federal judge who dismissed an antitrust lawsuit by the FTC.