* Sept pvt sector jobs data better than expected
* Yellen scheduled to speak later in the day
* Hudson City rises as M&T deal approved
* Western Digital up after Tsinghua investment
* Indexes up: Dow 0.83 pct, S&P 1.05 pct, Nasdaq 1.35 pct (Updates to early afternoon)
By Tanya Agrawal
Sept 30 (Reuters) - U.S. stocks rose on Wednesday as investors picked up beaten-down stocks, but all three major indexes were on track for their worst quarter since 2011.
For most of the third quarter, global markets were rocked by fears of slowing growth in China. Adding to the uncertainty, the U.S. Federal Reserve held off on raising interest rates at its September meeting.
Investors will be keen to put the bruising quarter behind them and look ahead to the third-quarter earnings season, which begins next week.
Data on Wednesday showed that the U.S. private sector added more jobs than expected in September, raising hopes of a strong reading in the government's payrolls report due Friday.
The Fed has said it needs to see more improvement in the labor market and be confident that inflation will increase before raising rates for the first time since 2006. Inflation remains below the Fed's 2 percent target.
Investors will look for clues on the timing of a rate hike when Fed Chair Janet Yellen and St. Louis Fed President James Bullard speak at a conference in St. Louis later on Wednesday.
Yellen said last week the central bank remained on track to raise rates this year. The Fed meets next on Oct. 27-28.
"The market is in a relief rally after five days of selloff and as investors rebalance their portfolios," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
For stocks to rally in the fourth quarter, investors need more clarity from the Fed regarding interest rates and signs of improvement in China's economy, Hogan said.
The global economy, however, is expected to remain weak in the near term. IMF head Christine Lagarde said on Wednesday a relentless deceleration in the economies of the developing world would cause global growth to slow this year.
At 12:35 ET (1635 GMT), the Dow Jones industrial average was up 133.92 points, or 0.83 percent, at 16,183.05, the S&P 500 was up 19.81 points, or 1.05 percent, at 1,903.9 and the Nasdaq composite was up 61.19 points, or 1.35 percent, at 4,578.51.
All 10 major S&P sectors were higher, with the consumer discretionary index's 1.55 percent rise leading the advancers.
The Nasdaq biotechnology index was up 2.6 percent as investors continued to seek bargains in the sector, which took a beating after Democratic presidential candidate Hillary Clinton criticized drug pricing last week.
Although the market's recent rout has forced many strategists to slash year-end expectations, a Reuters poll shows the S&P 500 is expected to end 2015 roughly 11 percent above current levels.
Shares of Ralph Lauren were up 12.8 percent at $117.46 after the fashion powerhouse said its founder and CEO was stepping down and being replaced by the head of Gap's Old Navy division. Gap was down 6.4 percent at $28.28.
Western Digital jumped 13.4 percent to $78.66 after the U.S. data storage company said an arm of China's Tsinghua Holdings Co Ltd planed to buy a 15 percent stake in it. Rival Seagate rose 5.5 percent to $44.07.
Hudson City Bancorp rose 6 percent to $10.10 after the Fed approved the bank's acquisition M&T Bank. M&T Bank was up 0.2 percent at $120.50.
Advancing issues outnumbered decliners on the NYSE by 2,100 to 881. On the Nasdaq, 1,805 issues rose and 886 fell.
The S&P 500 index showed two new 52-week highs and 10 new lows, while the Nasdaq recorded 17 new highs and 127 new lows. (Reporting by Abhiram Nandakumar and Tanya Agrawal; Editing by Saumyadeb Chakrabarty)