(REUTERS) -- The Nasdaq rose 1 percent on Wednesday a day after stocks suffered their worst selloff in three months as a report showed the U.S. private sector added more jobs than expected last month.

Job creation by U.S. private employers picked up in February, reinforcing hopes that Friday's government payrolls report would confirm a steadily healing labor market.

Also helping equities, Federal Reserve officials are considering a novel approach to bond buying aimed at countering some of the worry that another round of asset purchases could fuel inflation, according to The Wall Street Journal.

The Dow Jones industrial average was up 74.74 points, or 0.59 percent, at 12,833.89. The Standard & Poor's 500 Index was up 9.35 points, or 0.70 percent, at 1,352.71. The Nasdaq Composite Index was up 28.76 points, or 0.99 percent, at 2,939.08.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)