On the data front, initial jobless claims came in at 265,000, slightly below the expected 268,000.
The Philly Fed survey came in at 12.4 for March, well above the February number of -2.8. Leading indicators came in slightly below estimates, posting a 0.1 percent gain last month, while the Job Openings and Labor Turnover Survey showed an increase in January.
"Bottom line as the Philly Fed said, the index for March "suggests a pickup in general activity in March." Likely helping was the rebound in markets from the mid February lows, the US dollar no longer rallying and some mean reversion after a half a year of manufacturing declines," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
Thursday will also see the auction of $11 billion in 10-year TIPS.
In oil markets, Brent crude traded at $41.33 a barrel, up 2.5 percent, while U.S. crude was at $39.97 up 3.9 percent.