The Beige Book, an important indicator on the state of the U.S. economy and as such, is a critical tool for the Fed in making key decisions, showed the Fed sees moderate wage growth in the coming months.
Peter Boockvar, chief market analyst at The Lindsey Group, said the comments in the Beige Book were not surprising. "The economic data certainly doesn't call for a rate hike but the fed funds rate should never have been this low in the 7th year of an economic expansion," he said in a note to clients.
"I think we get a better read of the U.S. economy and [the report] will be watched a bit more closely in the wake of the disappointing ISM and jobs report numbers," Wunderlich's Hogan said ahead of the Beige Book's release.
Market participants digested a very weak ISM services print for August on Tuesday, but stocks managed to close higher, with the Nasdaq posting new all-time high of 5,275.91 at the close.
Other economic data due Wednesday included the July read on the Jobs Openings and Labor Turnover Survey (JOLTS), which showed employers posting 5.9 million job openings for that month.
"There's very little in terms of economic data, not just for today, but for the week, said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
Investors have closely payed attention to economic data as they gauge when the Fed will raise interest rates.
"It's more logical for the Fed to raise rates in September because there is a seven-week window for the market to correct itself, if needed," Schwab's Frederick said. "But if they wait until after the election and the market sells off, there is only a five-week window."
Market expectations for a September rate hike were 15 percent on Wednesday, according to the CME Group's FedWatch tool.
"If they hike this year, I think it's going to be one-and-done," said Minh Trang, senior FX trader at Silicon Valley Bank.
U.S. stocks have continued to trade in a very tight range, with the S&P 500 posting its last 1 percent move on a closing basis back in July 8.
"I think the market is trying to determine which direction it wants to go, with the ECB and the Bank of Japan possibly adding more liquidity. I think the market generally wants go higher," said Robert Pavlik, chief market strategist at Boston Private Wealth. "The Federal Reserve seems to be out of the picture, at least in the market's perspective."
In oil markets, U.S. crude settled 1.49 percent higher at $45.50 per barrel in choppy trade, despite waning hopes that the world's largest oil producers would rein in output.
U.S. Treasurys traded mixed , with the two-year note yield near 0.73 percent and the benchmark 10-year yield around 1.54 percent. The dollar rose against a basket of currencies, with the euro near $1.124 and the yen near 101.7.
In corporate news, Apple is scheduled to hold an event later on Wednesday, where the company unveiled its latest iPhone. Apple's stock rose 0.63 percent.
"One would have to think that's playing into the Nasdaq," said Adrian Day, CEO at Adrian Day Asset Management, " But ... I can't imagine this will be anything revolutionary."