North American markets soared higher Wednesday after investors took heart from a strong U.S. productivity report and data indicating the service sector is expanding. The S&P/TSX composite index rose 70.08 points to 7,001.33.

Shares of Assante Corp. rose 65¢ to $8.25 after the Winnipeg-based financial services firm said it is reviewing an unsolicited takeover offer.

Sun Life Financial shares rose 52¢ to $29 after the insurer said it plans to lobby the federal government to ban mergers between life insurance companies and banks.

The junior TSX Venture Exchange was off 3.19 at 1,087.01.

In New York, the Dow Jones industrial average closed above the 9,000-mark Wednesday for the first time in nearly 10 months.

The Dow closed up 116.03, or 1.3%, to 9,038.98. It was the first time the Dow finished above 9,000 since Aug. 22, when it stood at 9,053.64.

The Nasdaq composite index rose 31.09, or 1.9%, to 1,634.65. The S&P 500 index advanced 14.68, or 1.5%, to 986.24.

The U.S. Institute for Supply Management reported Wednesday that activity in the service sector grew at a faster-than-expected pace in May, marking the highest level in the indicator since the beginning of the year.

The ISM’s non-manufacturing index jumped to 54.5 from 50.7 in April, while analysts had been expecting 51. Any figure above 50 indicates economic expansion.

Earlier Wednesday, the U.S. Labor Department said that first-quarter productivity was higher than previously thought. Non-farm business productivity grew at an annual rate of 1.9% from January through March — three-tenths of a percentage point more than initially estimated.

The Canadian dollar rose as investors sought out higher-yielding currencies amid expectations of interest rate cuts by the U.S. Federal Reserve and the European Central Bank.

The loonie finished at US73.71¢ up from US73.24¢ at Tuesday’s session close.