The Standard Poor’s 500-stock rose 1.8 percent, while the Dow Jones industrial average rose to 10,939.95 points, a gain of 131.24, or 1.2 percent. The Nasdaq composite index rose 2.3 percent, driven partially by a 13 percent rise in shares of Research in Motion, which has been the subject of rumors about a possible takeover.

Stocks continued to surge in Europe. The Euro Stoxx 50 index, a gauge of blue-chip shares in the euro zone, closed up 4.22 percent. In London, the FTSE 100 closed up 3.19 percent.

Economic data released Wednesday painted a mixed view of the American economy.

A report by the Institute for Supply Management showed that growth among non-manufacturing businesses slowed in September, as compared to August. The index registered 53.0 percent, in line with analysts’ expectations. A figure above 50 percent indicates growth. New orders increased 3.7 percentage points, however, a possible sign of strengthening performance.

However, the report also registered a contraction in employment after 12 consecutive months of growth. The index’s level for employment registered 48.7 percent, down 2.9 percentage points. Prices also increased as a slower rate in September.

Kathy Jones, a fixed-income strategist at Charles Schwab, said this probably reflected persistent reluctance among businesses to be too aggressive.

“Maybe we got some good orders right now, but we’re not confident with that trend continuing,” she said.

A separate report on employment from ADP Employer Services showed that private employers added 91,000 jobs in September at a seasonally-adjusted level, slightly better than analysts’ expectations.

Some economists see the report as a hint of what to expect on Friday when the Labor Department publishes its September jobs data. The government’s job report is considered one of the most important indicators of the health of the national economy. A consensus of analysts expects it to show 65,000 new jobs for the month.

The situation in Europe continued to weigh on the minds of investors. In addition to confusion over the latest rescue plan for Greece and signs that a double-dip recession is imminent, problems in the banking system threatened to further undermine government finances.

“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s Investors Service said on Wednesday, a day after it followed Standard Poor’s in cutting Italy’s credit rating, citing the country’s debt burden and paltry economic growth.

“Moody’s expects fewer countries below Aaa to retain high ratings,” the agency said, adding that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”

Tuesday’s momentum on Street did not carry over into Asian markets. The Nikkei 225 stock average in Japan fell 0.9 percent on Wednesday, and South Korea’s Kospi index was down 2.3 percent, but the S.P./ASX 200 index in Australia gained 1.4 percent. Stock markets in Hong Kong and mainland China were closed for a holiday.

The dollar was relatively stable, with the euro trading at $1.3342.

Benchmark crude oil futures for November delivery rose 4.7 percent to $79.26 a barrel. Comex gold futures rose 2.6 percent to $1,640.00.

This article has been revised to reflect the following correction:

Correction: October 5, 2011

An earlier version of this article had an incorrect surname for Kathy Jones, a fixed-income strategist at Charles Schwab. 

Article source: http://www.nytimes.com/2011/10/06/business/daily-stock-market-activity.html?partner=rss&emc=rss