US equity rebounded from Tuesday's month-end pension and CTA selling boosted by overnight news that China's economy was roaring back sparked growth optimism and outweighed concerns about sticky inflation that could keep the Fed on its hawkish path.

Boosting sentiment today was news that China's economy is showing signs of a stronger rebound after Covid restrictions were abandoned, with manufacturing posting its biggest improvement in more than a decade. The big economic news overnight came from China's random number generator, and specifically the manufacturing PMI which rose to 52.6 last month, the highest reading since April 2012. The Caixin manufacturing PMI also rose into expansion, to 51.6 in February from 49.2 in January. The NBS non-manufacturing PMI increased markedly to 56.3 in February from 54.4 in January, driven by an acceleration in both construction and service sectors.