US Stocks rebound after worst loss of 2012 (ext)

NEW YORK (CNNMoney) -- U.S. stocks closed higher Wednesday, a day after the biggest one-day sell-off of 2012, as investors were heartened by the latest economic reports.

A labor market report that signaled private sector hiring is picking up steam helped bolster sentiment.

Gas prices also declined for the second day in a row, after a long streak of continuing increases. The pullback is helping to ease some concerns over what higher gas prices could mean for the American consumer.

The Dow Jones industrial average (INDU) closed up 78 points, or 0.6%. The S&P 500 (SPX) jumped 9 points, or 0.7%. The Nasdaq (COMP) jumped 25 points, or 0.9%.

Still, the gains were modest as investors wait to see what the deal between Greece and its private-sector bondholders will look like. Greece and its private bondholders must officially agree to a crucial restructuring of the nation's debt this week, in order for Greece to avoid defaulting on its debt.

"If something goes wrong with Greece's deal, I can say with total certainty that the market will react negatively," said Dan Greenhaus, chief global strategist at BTIG. "Today investors are saying what's the harm in waiting a day to see what's going to happen."

Meanwhile, investors are also waiting for Friday's release of the February jobs report to get a more detailed reading on the health of the U.S. economy.

Oil for April delivery added $1.46 to $106.16 a barrel.

Gold futures for April delivery rose $11.80 to $1,683.90 an ounce.

The dollar was little changed against the euro and Japanese yen, but rose slightly versus the British pound.