U.S. stocks closed higher on Wednesday as investors digested the latest economic data.

The Dow Jones Industrial Average increased 148.23 points, or 0.58 percent, to 25,702.89. The S&P 500 increased 19.40 points, or 0.69 percent, to 2,810.92. The Nasdaq Composite Index rose 52.37 points, or 0.69 percent, to 7,643.40.

New orders for manufactured durable goods in January increased 0.9 billion U.S. dollars, or 0.4 percent to 255.3 billion dollars, the Commerce Department said on Wednesday.

In a separate report, the department said construction spending jumped 1.3 percent in January, the largest increase since April last year, after a revised 0.8 percent drop in December.

Investors continued to monitor the performance of Dow component Boeing. The aircraft manufacturing giant's stock has been under pressure this week amid worries over the safety of the 737 Max airplane, one of its most popular models.

Shares of Boeing plunged after the U.S. government announced to have grounded all Boeing 737 Max jets in the country, but pared losses later in the day and closed up 0.46 percent.