U.S. stocks ended higher on Wednesday as the retail sector rose broadly following Macy's strong earnings report.

The Dow Jones Industrial Average added 62.52 points, or 0.25 percent, to 24,768.93. The S&P 500 gained 11.01 points, or 0.41 percent, to 2,722.46. The Nasdaq Composite Index was up 46.67 points, or 0.63 percent, to 7,398.30.

Macy's shares rallied over 10.8 percent on stronger-than-expected quarterly earnings in market closing on Wednesday. The company's same-store sales, a key metric for retailers, added 4.2 percent last quarter, beating market expectations of a 1.4-percent gain.

The retailer's surge boosted the broader retail sector. The SPDR S&P Retail ETF jumped 1.6 percent on Macy's move, its best intraday performance since April 10.

Investors were also closely monitoring the bond market. The benchmark 10-year Treasury yield hit 3.10 percent on Wednesday, its highest level since July 8, 2011.

The yield, a barometer for mortgage rates and other financial instruments, has jumped recently on signs of rising inflation, which sparked market speculation for more rate-hikes later this year.

The probability that the U.S. central bank will raise its benchmark rate a fourth time this year went above 50 percent for the first time, according to the CME's FedWatch tracking tool for the fed funds futures.