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STORY: Investors worried about inflation and the timing of interest rate cuts by the Federal Reserve got some relief on Wednesday.

A report from the Institute for Supply Management showed softer-than-expected growth in the U.S. services sector in March.

Particularly lifting investors' spirits was prices paid by businesses, which dropped to a four-year low, a reading that bodes well for the inflation outlook.

That boosted Wall Street’s main indexes Wednesday morning.

Stocks had come under pressure before the opening bell after a report showed private sector hiring in March grew faster than predicted and February’s job growth was revised higher.

The data from ADP also said wages for workers remaining in their jobs increased 5.1% on a year-on-year basis, after a similar gain in February.

Traders expect the Fed to start reducing rates in June according to the CME FedWatch Tool.

But Atlanta Fed President Raphael Bostic said on Wednesday that the central bank should only cut rates once this year and not until the fourth quarter.

Focus is now on the Labor Department's employment report on Friday, which is expected to show hiring increased by 200,000 jobs in March.