There are some splices available for in-wall use, but they are really, as I understand it, meant for repairs where there is no other practical option.
A splice normally is done inside a junction box, the junction box must remain accessible, and the incoming wires should be around 6" long, though sometimes you have to make do with what you have.
The solution is two boxes, a couple of feet apart. Cut the cable in between (as far as you can reach from one box or the other, so that you have 6" to work with inside each box. Then you add a new cable segment between the two boxes.
In this case, assuming the hole you already made will be for the sconce, you can either make a new box below it or you may be able to make use of the receptacle box. A lot will depend on how the cable is routed to the receptacle box and secured in place. I would open it up (with the breaker off, of course), pull out the receptacle and see if the cable can be pulled up from the sconce hole. There may be an issue of loosening or removing a clamp (usually not too hard to do).
The problem will be if the cable is stapled to a stud above the receptacle box, which will depend on how the cable was installed. If the cable (and receptacle) was installed before the drywall then it should be secured and it could get tricky. If the receptacle was added after the drywall then it should be loose in the wall and it will just be a question of the box clamp.
Assuming you can make use of the receptacle box, attach a new cable to the existing end of the cable before pulling from above, and the rest is easy.
If you can't make use of the receptacle box then you'll have to make a new hole for a new box somewhere in between the sconce and the receptacle. That new box can have a receptacle, but it doesn't have to. It could just have a blank plate covering it.
And thank you to crip659 for another suggestion:
Unless the existing receptacle box is really full (which sometimes happens), use the sconce hole to drop a new cable down to the receptacle box and pigtail it to the existing wires. Then you don't have to worry about moving and splicing cables. Aside from box fill, the only other issue is getting the cable into the box, which may be easy or may be a little tricky.