The Dow gained 454.84 points, or 1.59%, to close at 29,100.50. The S&P 500 climbed 1.5% to 3,580.84. The Nasdaq Composite advanced 1% to 12,056.44. The major averages rallied Wednesday as investors snapped up shares in some of the more beaten-down parts of the market. The Dow posted its best rally since mid-July and closed less than 2% from an all time high.
ADP said U.S. private payrolls grew by 428,000 in August. Economists polled by Dow Jones expected a gain of 1.17 million. Peter Boockvar, chief investment officer at Bleakley Advisory Group, said the pace of hiring "has really slowed down over the past two months where the average is just 320k." Still, the major averages powered on higher.
Coca-Cola and IBM rose 4% and 3.9%, respectively, to lead the Dow higher. Apple, meanwhile dropped 2% as traders took profits following the tech giant's recent run-up. Tesla slid 6% after its biggest outside investor trimmed its position on the electric car maker, citing portfolio restrictions.
Weekly jobless claims data and the latest read on the ISM non-manufacturing index are set for release Thursday.
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