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Private payrolls rise less than expected in Feb - ADP

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Fed's Powell still expects rate cuts later this year

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US job openings fall marginally in January

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Indexes up: Dow 0.20%, S&P 0.51%, Nasdaq 0.58%

(Updates with final closing prices, trading volume)

By Sinéad Carew and Bansari Mayur Kamdar

March 6 (Reuters) - Wall Street's three major indexes

closed higher on Wednesday as economic data and comments from

Federal Reserve Chair Jerome Powell reinforced expectations that

the U.S. central bank would reduce its benchmark interest rate

this year.

Powell said on Wednesday he expected the Fed to cut rates

and that the U.S. economy appeared nowhere near a recession,

although he shied away from committing to a timetable for rate

easing as progress on inflation was not assured.

In prepared remarks ahead of his congressional testimony,

Powell said inflation had "eased substantially" since hitting

40-year highs in 2022, but that policymakers still needed

"greater confidence" in its decline before rate cuts.

"He was clear that the Fed does see rate cuts coming this

year. That's what the markets needed to hear. Was it couched in

some ambiguous terms? Yes, but overall the message was clear,"

said Quincy Krosby, chief global strategist for LPL Financial.

"It's not if but when the Fed initiates a rate easing policy."

Along with Powell's testimony, Mark Luschini, chief

investment strategist at Janney Montgomery Scott in

Philadelphia, said Wednesday's economic data also boosted hopes

for rate cuts and confidence in the labor market.

Data showed U.S. private payrolls increased slightly less

than expected in February.

And the Job Openings and Labor Turnover Survey (JOLTS)

showed job openings fell marginally in January, while hiring

declined as labor market conditions continued to gradually ease.

"The number of job openings shriveled a bit, but are still

quite healthy and indicative of a labor market that is still

looking pretty stout," said Luschini. "It fits the Goldilocks

narrative that's become consensus."

February's nonfarm payrolls report due on Friday is expected

to offer further clarity on the state of the labor market.

The Dow Jones Industrial Average rose 75.86 points,

or 0.20%, to 38,661.05. The S&P 500 gained 26.11 points,

or 0.51%, at 5,104.76 and the Nasdaq Composite added

91.96 points, or 0.58%, at 16,031.54.

Wall Street indexes had lost more than 1% on Tuesday with

weakness in megacap stocks and as investors anxiously awaited

Powell's comments.

Nine of the 11 major S&P 500 industry sectors finished in

the green on Wednesday, led by rate-sensitive utilities

, up almost 1%, and information technology,

which rose 0.9%. Consumer discretionary was the

biggest loser, down 0.4%.

Chip companies outperformed the broader market after

underperforming on Tuesday, with the Philadelphia semiconductor

index rallying 2.4% to a record closing high for the

fourth time in five sessions.

Putting pressure on the consumer index, Tesla fell

2.3%, losing ground for its third straight day.

A closely watched Morgan Stanley analyst lowered his price

target on the stock, saying that electric-vehicle demand was

continuing to weaken in key markets including China despite

hefty price cuts. Also a Baird analyst said Telsa's

first-quarter earnings were at risk, suggesting delivery

estimates still need to go lower.

U.S.-listed shares of China's JD.com ( JD ) advanced

16.2%after the e-commerce group reported fourth-quarter revenue

above estimates and enlarged its share repurchase program.

Shares of cryptocurrency-linked companies advanced,

including a 10% gain for Coinbase Global ( COIN ) and

MicroStrategy's ( MSTR ) 18.6% increase.

CrowdStrike Holdings ( CRWD ) shares soared 10.8% after it

forecast annual results above Wall Street estimates, lifted by

strong enterprise spending on cybersecurity to counter rising

online threats. However, rival Palo Alto fell 4%.

Advancing issues outnumbered decliners by a 2.82-to-1 ratio

on the NYSE where there were 493 new highs and 59 new lows.

On the Nasdaq 2,605 stocks rose and 1,687 fell as advancing

issues outnumbered decliners by about a 1.54-to-1 ratio. The S&P

500 posted 53 new 52-week highs and five new lows while the

Nasdaq recorded 229 new highs and 120 new lows.

On U.S. exchanges 12.54 billion shares changed hands

compared with the 12.06 billion average for the last 20

sessions.