Wall Street tumbled at the open, after ADP Employer Services said U.S. payrolls shrank by a larger-than-expected 250,000 jobs in November, the most since 2001.
The Institute for Supply Management said its services sector index fell to 37.3 in November from 44.4 in October. The reading was significantly lower than the 42 the market expected.
Meanwhile, the Labor Department reported that productivity rose at an annual rate of 1.3 percent in the July-September quarter.
The Fed's beige book report said the United States' economic picture has deteriorated, suggesting the economy was sinking deeper into recession.
However, investors believed that much of the bad news is already priced into the market and trying to do bottom fishing after the huge declines of the past two months.
The Dow Jones average rose 172.60, or 2.05 percent, to 8,591.69. The Standard & Poor's 500 index rose 21.93, or 2.58 percent, to 870.74, while the Nasdaq composite index rose 42.58, or 2.94 percent, to 1,492.38.
(Xinhua News Agency December 4, 2008)
