Stocks on Wall Street closed solidly higher, with the S&P 500 and Nasdaq reaching new highs and chipmaker Nvidia's market value surpassing $3 trillion.
Nvidia thus becomes only the third US company to reach a market valuation of that level, after Microsoft and Apple, AFP reports.
The broad-based S&P 500 was up 1.2 percent to 5,354.03 points, while the tech-heavy Nasdaq Composite Index rose 2.0 percent to 17,187.90 points.
The Dow Jones industrial average rose 0.3 percent to 38,807.33 points.
The strong performance came at a time when Nvidia crossed the $3 trillion market capitalisation mark, overtaking tech giant Apple, and its shares ended 5.2% higher.
"You have sort of the best of both worlds for the stock market because you have lower interest rates and the strength of the mega-cap stocks, specifically Nvidia," said Patrick O'Hare of Briefing.com.
Other big names such as Meta Platforms, Facebook's parent company, rose 3.8 percent and Hewlett Packard Enterprise rebounded 10.7 percent.
Apple shares rose 0.8 percent.
Economic data released on Wednesday also showed that private sector hiring fell more than expected in May, with employers adding 152,000 jobs, according to payroll firm ADP.
A cooler job market may give the Federal Reserve confidence to cut interest rates sooner rather than later.
All eyes turn to the government's employment report, due out Friday, for more evidence that the world's largest economy is cooling enough for the central bank to start lowering interest rates.
A separate survey showed that U.S. service sector activity also rebounded in May, a change that O'Hare said calms concerns about the economy and reinforces market optimism about a "soft landing" - in which inflation falls without a disruptive drop. | BGNES
