The Dow rose 115.69, or 0.43%, to 26,889.63, while the broader S&P 500 index rose 10.59, or 0.36%, to 2,934.02. The tech-heavy Nasdaq composite gained 30.15, or 0.38%, to 8,029.70.
The ADP private sector jobs report for September showed a better-than-expected rise in payrolls of 230,000.
Usually, strong jobs data spark inflation worries, but there is not much concern that the Federal Reserve will feel a sense of urgency to boost rates, having laid out its plans for gradual hikes. A hike in December is already widely expected.
The ISM measure of services activity for September arrives shortly after the start of trading.
Meanwhile, worries about an EU showdown were tempered on reports that Italy’s populist government may lower budget-deficit targets.
General Motors (NYSE:GM)jumped 4% on an autonomous car partnership with Honda.
And homebuilder Lennar (NYSE:LEN) slipped 1% despite solid earnings.
In Europe, Germany’s DAX fell 0.4%, while in France the CAC 40 climbed 0.6% and in London, the FTSE 100 was up 0.5%. Meanwhile the pan-European Euro Stoxx 50 lost 5 points, or 0.16%, while Spain’s IBEX 35 slumped 0.7%.
In commodities, gold futures rose 0.1% to $1,208.20 a troy ounce, while crude oil futures lost 0.4% to $74.92 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.08% to 95.58./reuters.com