U.S. stocks surge on upbeat jobs data

U.S. stocks jumped after positive employment data on Wednesday, as major stock indices rebounded strongly from sharp selloffs on concerns about diving oil prices.

The Dow Jones Industrial Average advanced 212.88 points, or 1. 23 percent, to 17,584.52. The S&P 500 rose 23.29 points, or 1.16 percent, to 2,025.90. The Nasdaq Composite Index gained 57.73 points, or 1.26 percent, to 4,650.47.

The rebound was fueled by better-than-expected U.S. private sector employment at the end of last year, which gave investors some relief that the U.S. economy is still on the right track despite weak global growth and plunging crude prices.

U.S. private sector employment added 241,000 new jobs in December, according to a report by payroll processor ADP released Wednesday, topping analysts' expectations.

"December delivered another strong number well above 200,000 to close out a solid year of employment growth with over two and a half million jobs added," said Carlos Rodriguez, president and chief executive officer of ADP.

"Small businesses continued to lead the way, but mid-sized and large companies also showed solid gains," he added.

Investors are looking to the Labor Department's December nonfarm payrolls report due out Friday to get a better picture of improvements in the labor market.

Moreover, U.S. international trade deficit in goods and services narrowed to 39.0 billion U.S. dollars in November from the revised 42.2 billion dollars in October, said the U.S. Commerce Department on Wednesday.

According to the Federal Reserve's minutes of its December policy meeting released Wednesday, the Fed could start hiking rates even with inflation below its 2 percent target due to lower oil prices. Markets didn't react much to the release as investors were digesting the minutes.

U.S. crude prices stabled Wednesday as traders started to buy in after recent sharp decline. Light, sweet crude for February delivery moved up 0.72 U.S. dollar to settle at 48.65 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery gained 5 cents to close at 51.15 dollars a barrel.

Adding some more upward jolts to the market, the European Central Bank is expected to further monetary easing after data showed the euro zone saw negative inflation rate in December.

On Tuesday, the S&P 500 logged its longest losing streak since late 2013 after falling for five sessions in a row.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 8.57 percent to end at 19.31 Wednesday.

In other markets, the U.S. dollar climbed against other major currencies on Wednesday as minutes from the Federal Reserve's December meeting showed the central bank was on course to raise interest rates in 2015.

In late New York trading, the euro moved down to 1.1848 dollars from 1.1914 dollars in the previous session, while the greenback bought 119.01 Japanese yen, higher than 118.63 yen of the previous session.

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as the dollar rebounded after a report showed shrinking U.S. trade gap.

The most active gold contract for February delivery lost 8.7 dollars, or 0.71 percent, to settle at 1,210.70 dollars per ounce.