US stocks bounced back on Wednesday after five sessions of losses, following strong private sector jobs data and as deflation concerns in the euro zone were seen pushing the bloc's central bank into action.
"The deflationary data suggested the ECB will be justified in doing more and that is probably what people are betting on right now," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
Further support for stocks came after data showed US private employers added 241,000 jobs last month, more than the 226,000 expected, while the November number was revised to 227,000 from the previously reported 208,000.
"You can also attribute (higher equity prices) to prospects of continued growth in the US," said Jacobsen.
At 11:46 am EST (1646 GMT) the Dow Jones industrial average rose 123.52 points, or 0.71 percent, to 17,495.16, the S&P 500 gained 15.57 points, or 0.78 percent, to 2,018.18 and the Nasdaq Composite added 39.38 points, or 0.86 percent, to 4,632.11.
Minutes from the most recent meeting of the US Federal Reserve policy-setting committee are due at 2:00 pm (1900 GMT) and traders will scan them for clues on the timing of an interest rate hike. The Fed said it would take a "patient" approach in deciding when to lift borrowing costs.
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