Here's what happened to the stock market on Wednesday

Market rallying on three things, according to this equity strategist

Dow Jones Industrial Average rises 527 points

The Dow surged 527.24 points, or 2.05%, to close at 26,269.89. The S&P 500 gained 1.36% to end the day at 3,122.87. The Nasdaq Composite rose 0.78% to 9,682.91. Better-than-expected data sent stocks flying as traders bet the worst from the economic slowdown is in the rear-view mirror.

Data comes in better than expected

ADP and Moody's Analytics reported private payrolls fell by another 2.76 million in May. The ADP number was far less than the 8.75 million estimate. Data from the Institute for Supply Management showed the U.S. services sector contracted less than expected, rebounding from an 11-year trough. 

Small caps, reopening trade lead the gains

Small-cap stocks outperformed their large-cap counterparts on Wednesday, with the Russell 2000 index gaining 2.59%. Stocks poised to benefit from the economy reopening also outperformed. Delta Air Lines rose 7.8% while Wynn Resorts advanced 11.18%.

What happens next?

Weekly jobless claims data, along with trade and productivity numbers, are set for release Thursday. Slack, Gap and Broadcom are also scheduled to report earnings.

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