U.S. stocks rallied into the close, with the Dow and S&P 500 ending the day at records amid encouraging economic reports on Wednesday.
Earlier, stocks held modest gains on the release of the Federal Reserve's Beige Book that said the economy continues to expand.
"It's certainly one of the most bullish reports I've heard," said Jack Ablin, chief investment officer at BMO Private Bank. "The outlook for the economy is better than investors feared."
"Our economy has gotten out of the slow, steady growth phase," said Marc Chaikin of Chaikin Analytics, who believes that the stock market will continue to rise into the year's end as money managers realize their holdings have underperformed benchmarks.
"There's no other place for large pools of capital than the U.S. market," he said.
"It's sort of a slow day," JJ Kinahan, chief derivatives strategist at TD Ameritrade said. "The path of least resistance has been higher."
The energy sector rose about 1 percent and was a leader on the S&P 500, helped by stabilization in oil prices and a report that showed a drop in oil supply for the last week.
The decline in oil inventories was "a bit of a pleasant surprise," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"It's all about the economic data, which continues to show growth," he said.
In the morning, the ISM services index beat expectations with a leap to a three-month high of 59.3 for November. Before the open, ADP report on private payrolls showed sector employment is keeping up its recent pace in November, although the 208,000 new jobs was a shade below expectations.
U.S. nonfarm productivity grew a bit faster than initially thought in the third quarter, while sharp downward revisions to compensation pointed to muted wage inflation that should give the Federal Reserve room to keep interest rates low for a while.
Weekly jobless claims come out on Thursday, and the all-important jobs report is due on Friday.
"Look at the economic data today as a precursor to bigger numbers tomorrow," said Art Hogan, chief market strategist at Wunderlich Securities.