US equity indexes closed higher Wednesday after the odds of an interest rate cut next week rose following an unexpected drop in private-sector jobs, which pushed government bond yields lower.

* There is an 89% chance the Federal Reserve will cut its key interest rate by 25 basis points next week, according to CME FedWatch.

* Private-sector employment in the US fell by 32,000 in November, defying expectations for a gain, according to ADP data.

* The Institute for Supply Management's US services index edged up to 52.6 in November from 52.4 in October. Analysts expected a drop to 52.0.

* January West Texas Intermediate crude oil rose $0.38 to settle at $59.02 per barrel, while February Brent crude, the global benchmark, was last seen up $0.33 at $62.78.

* Microchip Technology (MCHP) shares rose 12%, the top gainer on the S&P 500, after the company on Tuesday forecast fiscal Q3 adjusted earnings per share of $0.40, or at the high end of its prior guidance of $0.34 to $0.40.

* Alexandria Real Estate Equities (ARE) shares fell 10%, the biggest decliner on the S&P, after the company slashed its quarterly dividend by 45%.