U.S. stocks rose on Wednesday after a report said the labor market is strong, easing some worry about a looming economic slowdown.
The ADP employment survey showed a surge in private payrolls of 189,000, up from 119,000 in October.
The data are much stronger than expected and [are] at odds with the market concerns over the economy, Action Economics says.
The markets were encouraged Wednesday by a Bloomberg report that federal regulators and lenders are homing in on five years as the length of an interest-rate freeze on subprime mortgages.
The ADP report may give the market a preview for Friday's November employment data. That report is seen as crucial by many market participants looking for signs of a looming recession.
The Standard & Poor's 500 Index added 16 points, or 1.09 percent, to end at 1,479.30. The Dow Jones Industrial Average gained 70 points, or 0.53 percent, to 13,332. The Nasdaq Composite Index rose 27.75, or 1.35 percent, to 2,090.