U.S. stocks rally after ADP report

U.S. stocks rose in the morning session on Wednesday, as investors mainly digested the newly-released jobs data.

At midday, the Dow Jones Industrial Average was up 144.81 points, or 0.70 percent, to 20,834.05. The S&P 500 rose 13.30 points, or 0.56 percent, to 2,373.46. The Nasdaq Composite Index gained 26.93 points, or 0.46 percent, to 5,925.53.

U.S. private sector employment increased by 263,000 jobs from February to March, on a seasonally adjusted basis and well above the market consensus of 185,000, according to the March ADP National Employment Report Wednesday.

The ADP figure is widely seen as a pre-indicator for the non-farm payrolls report due out on Friday. Analysts said the nonfarm jobs might also be better than expected.

The Non-Manufacturing Index, which measures activity in the U.S. service sector, registered 55.2 percent in March, below market expectations of 57, the Institute for Supply Management (ISM) said in its monthly survey Wednesday.

Meanwhile, trades will also keep a close eye on the minutes from the U.S. Federal Reserve to be released later Wednesday.

"The FOMC minutes from the March meeting release later today, which could provide more discussion points on Fed thinking for future rate hikes and unwinding the balance sheet," said Jay Morelock, an economist at FTN Financial, in a note.

U.S. stocks ended slightly higher after wavering between small gains and losses Tuesday, as investors pondered over a string of economic reports. Endit