After previous session's weakness, US markets ended higher on Wednesday as traders preferred to buy stocks at lower levels. Traders took some support as a report released by the Institute for Supply Management (ISM) said that service sector activity in the U.S. unexpectedly grew at a faster pace in the month of February. The ISM said its services PMI climbed to 56.1 in February from 53.8 in January, with a reading above 50 indicating growth. The street had expected the index to edge down to 53.6. With the unexpected increase, the services PMI reached its highest level since hitting 56.5 in July of 2022. Besides, a report released by payroll processor ADP showed that private sector employment in the U.S. increased by more than expected in the month of February. ADP said private sector employment climbed by 63,000 jobs in February after rising by a downwardly revised 11,000 jobs in January. 

On the sectorial front, Telecom stocks moved sharply higher over the course of the trading session, driving the NYSE Arca North American Telecom Index up by 2.2 percent. Meanwhile, semiconductor, biotechnology and computer hardware stocks also saw considerable strength, contributing to the surge by the tech-heavy Nasdaq.

Dow Jones Industrial Average added 238.14 points or 0.49 percent to 48,739.41, Nasdaq increased 290.79 points or 1.29 percent to 22,807.48 and S&P 500 rose 52.87 points or 0.78 percent to 6,869.5.