Wall Street stocks soar on economic data

The Dow Jones Industrial Average soared 249.76 points (2.27 per cent) to close at 11,255.78, with all 30 blue-chip components closing in positive territory, led by do-it-yourself retailer Home Depot, up 5.10 per cent.

The S&P 500 index, a broader measure of the market, rose 25.52 points (2.16 per cent) to 1,206.07, while the tech-rich Nasdaq gained 51.20 points (2.05 per cent) to 2,549.43.

After recent days' concerns over European debt woes, traders shifted their focus closer to home and payrolls firm ADP, which said private sector employment rose by 93,000 payrolls in November, the fastest rate in three years.

The 10th consecutive month of gains offered hope that the jobs sector, still convalescing after a brutal economic recession, may be on the mend.

A key survey by the Institute of Supply Management, showing the US manufacturing sector expanded for a 16th consecutive month in November but at a slightly weaker pace than in the previous month, did not dampen optimism.

Adding to confidence, the Federal Reserve said in a report it sees continued improvement in the US economy.

"The economy continued to improve, on balance" through the reporting period from early October to mid-November, the Fed said in its Beige Book report gathering information from the bank's 12 districts.

Trader sentiment also gained a boost from data showing an expansion of Chinese manufacturing activity, although it increased the chances Beijing will raise interest rates in an effort to battle a roaring inflation.

US stocks had taken a bashing this week amid worries over European sovereign debt as a massive bailout plan for Ireland's banking system sparked fears other countries are in need of aid.

"Some upbeat manufacturing reports out of China, the US, and the UK, coupled with easing euro-area debt fears, are lifting sentiment to begin December in favorable fashion," said analysts at Charles Schwab.

"Moreover, a stronger-than-forecasted reading of US private sector payrolls is also helping sentiment."

Stocks of US automakers were also among the strong gainers, with Ford up 3.3 per cent and General Motors up 1.7 per cent after both companies reported robust US sales in November.

Shares of Bank of America were up 3.2 per cent after tumbling more than three pe rcent on Tuesday over reports the largest US bank may be the target of a massive documents leak by WikiLeak.

The US bond market slumped.

The yield on the 10-year Treasury bond rose to 2.96 per cent from 2.80 per cent on Tuesday, while that of the 30-year bond increased to 4.24 per cent from 4.10 per cent. Bond prices and yields move in opposite directions.