NEW YORK (AP) -- Wall Street rallied Wednesday after new data showed the overall economy is holding up, but that it's not too strong to prevent the Federal Reserve from cutting interest rates again. The Dow Jones industrial average rose more than 180 points.
Stocks turned around following two sessions of losses after a report showed hiring in the U.S. private sector expanded at a faster pace in November. ADP Employer Services said 189,000 jobs were added during the month -- an increase that bodes well for consumer spending.

The report raised hopes for a strong November jobs report from the Labor Department on Friday. Investors were also encouraged Wednesday after the department reported worker productivity advanced by an annual rate of 6.3 percent in the summer, the fastest pace in four years, while wage pressures eased.
"The best news for the market is good news on the economy," said Jack Ablin, chief investment officer at Harris Private Bank. "There might be a general malaise among homeowners these days, but as long as more people are getting paychecks then the economy can withstand the stress."
Still, there is enough uncertainty in the economy -- in particular the financial sector that is still struggling from months of credit problems -- that the market expects the Fed to lower rates. Some investors are betting the Fed will go beyond the generally anticipated quarter percentage point cut, and lower rates by a half point.
In midafternoon trading, the Dow Jones industrial average rose 183.39, or 1.38 percent, to 13,432.12.
Broader indexes also moved higher. The Standard & Poor's 500 index added 20.26, or 1.39 percent, to 1,483.05, while the Nasdaq composite index rose 47.59, or 1.82 percent, to 2,667.42.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.91 percent from 3.88 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.
The market is currently pricing in that there will be a rate cut next week, Ablin said. Supporting the case for a cut is that central banks globally seem to be open to the idea, a trend that would give the Fed even more room to move.
The Bank of Canada cut rates on Tuesday, while the Bank of England and European Central Bank will make rate decisions Thursday.
Investors also weighed a Commerce Department report that showed factory orders unexpectedly rose in October. However, that data was likely offset by a report from the Institute for Supply Management showing growth in the service sector cooled somewhat in November.
Wednesday's advance was fed by investors betting that the Fed might be generous and cut rates a half percentage point, or, in market lingo, 50 basis points.
"I do believe the market wants 50, that the Fed needs to do a lot more work, and that a quarter is not going to do it," said Greg Church, chief investment officer of Church Capital Management.
Mildly higher oil prices also contributed to the gains on Wall Street. OPEC decided Wednesday to keep output ceilings steady for now, a move that briefly propelled crude prices above $90 a barrel. Meanwhile, the government reported that U.S. oil supplies fell steeply last week while gasoline stockpiles rose, both by greater margins than analysts had expected.
Light, sweet crude rose 22 cents to $88.54 a barrel on the New York Mercantile Exchange.
Fannie Mae shares fell 39 cents to $34.79 after it followed rival mortgage financer Freddie Mac in cutting its dividend and selling special stock to raise capital. The government-sponsored lender hopes to cushion against mounting losses from high-risk home loans.
Comcast Corp. shares plunged $2.26, or 10.9 percent, to $18.47 after the cable operator said it won't generate as much cash flow and revenue for the year because of a difficult economic environment.
Technology stocks broadly advanced after Intel Corp.'s stock was upgraded on expectations the personal computer market will be strong next year. Shares added 94 cents, or 3.6 percent, to $27.25.
The Russell 2000 index of smaller companies rose 11.38, or 1.51 percent, to 763.44.

Advancing issues led decliners by a 4 to 1 basis on the New York Stock Exchange, where volume came to 768.1 million shares.
Overseas, Japan's Nikkei stock average closed up 0.83 percent, while Hong Kong's Hang Seng index rose 1.61 percent. Britain's FTSE 100 closed up 2.83 percent, Germany's DAX index rose 1.74 percent, and France's CAC-40 increased 2.02 percent.