Zeebiz Bureau
New York: US stocks posted biggest gain of the year on Wednesday amid hope that European leaders will do something to ease the region's debt crisis and talk of a rescue of Spain's troubled banks.
After a 6 percent fall by the S&P 500 in May that took the index below its key 200-day moving average on Friday, was up 29.63 points, or 2.30 percent, at 1,315.13.
The Dow Jones industrial average rose 286.84 points to close at 12,414.79, its biggest gain since December 20.
The Nasdaq Composite Index also gained 66.61 points, or 2.40 percent, at 2,844.72.
Both the Dow and S&P 500 had their biggest daily percentage increases since December 20. The S&P 500 also held above the psychologically important 1,300 level, while the Dow inched back into positive territory for the year.The S&P 500 is now up 4.6 percent for the year so far, but remains well off its highs of the year.
The energy, financial and technology sectors, all of which are tied to strong global demand, led gainers Wednesday. Among the big banks, shares of Bank of America shot up 7.6 percent to USD 7.64 and shares of Morgan Stanley climbed 8.4 percent to USD 13.94, both extending gains just ahead of the close.
European Central Bank President Mario Draghi suggested earlier Wednesday that further stimulus to tackle the euro zone's debt crisis would not necessarily be forthcoming, but speculation persisted that the ECB could act if financial market tensions intensify further.
The ECB left interest rates unchanged following its meeting Wednesday.
In the United States, Atlanta Federal Reserve Bank President Dennis Lockhart said the central bank may need to consider further monetary easing if a wobbly US economy falters or Europe's crisis creates more of a financial shock.
Investors will be keen to hear from Fed Chairman Ben Bernanke, who is due to testify on the economy before a congressional committee on Thursday.
With Agency Inputs
