U.S. stock markets advanced on Wednesday as encouraging economic data helped counter ongoing worries about conflict in the Middle East. The S&P 500 index closed 0.8% higher, marking its largest single-day gain in a week, with consumer discretionary and information technology sectors leading the gains. The Nasdaq 100 index rose 1.5%, while the Dow Jones Industrial Average increased by 0.5%. Small-cap stocks, which are more sensitive to economic data, also moved higher, with the Russell 2000 index climbing 1.1%. Mark Hackett, Chief Market Strategist at Nationwide, commented, "Even as tensions with Iran persist, the market is showing impressive resilience, behaving more like a consolidation than an emotional sell-off." U.S. services sector activity expanded in February at its fastest pace since mid-2022, while inflationary pressures showed signs of easing. ADP data revealed that U.S. companies added jobs at the fastest rate since July, exceeding expectations. Adam Crisafulli, founder of Vital Knowledge, described the services data as "particularly encouraging, showing strong growth alongside cooling inflation." Federal Reserve Governor Michelle Bowman indicated that despite the outbreak of conflict with Iran, it remains appropriate to continue with interest rate cuts. Market sentiment improved following a New York Times report suggesting that Iranian intelligence officials had indirectly contacted the CIA to explore terms for ending the conflict. Iranian officials later denied the report. U.S. Treasury Secretary Janet Yellen stated that President Donald Trump's plan to raise universal tariffs from 10% to 15% could be implemented as early as this week. Traders continued to monitor Thursday's initial jobless claims data and Friday's employment report for further market direction. At the close, the S&P 500 was up 0.8% to 6,869.5 points. The Dow Jones Industrial Average rose 0.5% to 48,739.41 points. The Nasdaq Composite gained 1.3% to 22,807.48 points. The Nasdaq 100 increased 1.5% to 25,093.68 points. The Russell 2000 advanced 1.1% to 2,636.012 points.