Stocks sprinted higher on Wednesday, carrying the Dow Jones Industrial Average back above 10,000 for the first time in three months on encouraging economic news.
The Nasdaq composite also topped a key technical level, closing above 2,000 for the first time since August 7th.
"Maybe investors are starting to get a bit of confidence back that valuations have stopped falling at least for a while," said Mr Jim Oberweis, portfolio manager at Oberweis Asset Management, which oversees $250 million.
"We are also starting to see light at the end of the tunnel for some companies. They are starting to give some guidance as to when they are going to see a turnaround," he said.
Stocks moved higher on an unexpectedly strong gain in US service sector activity last month. Meanwhile, better-than-expected reports on personal spending, the manufacturing sector and construction earlier in the week also fanned optimism.
Wall Street was also gearing for Friday's employment report, which may show further labour market weakness.
