US stocks were mixed on Wednesday as investors digested the possibility of the Federal Reserve cutting interest rates sooner than many had anticipated and updated data showed the US economy grew faster than previously reported in the third quarter.

The Dow Jones Industrial Average (^DJI) served as the biggest gainer barely finishing above the flat line, while the benchmark S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) fell about 0.1%.

Hopes for a policy pivot grew after Fed Governor Christopher Waller said there was "no reason" to insist rates stay "really high" if inflation continues to cool consistently.

While Fed Governor Michelle Bowman differed, other officials echoed Waller's dovish comments, with Chicago Fed President Austan Goolsbee voicing concerns about keeping rates "too high for too long."

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Influential investor Bill Ackman is among those now betting the Fed will start cutting rates earlier than expected, saying the move could come as soon as the first quarter.

Bonds extended gains fueled by dovish comments, with the 10-year Treasury yield (^TNX) — which moves inversely to prices — dropping about 6 basis points to around 4.27%, its lowest since September.

A fresh reading on US third quarter GDP showed the US economy grew at a 5.2% annualized rate last quarter, revised up from the previous reading of a 4.9% pace.

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