Wall Street surged on Wednesday with major indexes posting first gains in September as the strong rebound in European markets helped lift U.S. equities.
The gains came after three straight losses on concerns of worsening European debt situations and dismal U.S. economic outlook.
Market concerns eased a little on Wednesday after a German court tossed out lawsuits aimed at blocking the country's participation in helping Greece and other eurozone countries. Investors now hope that Berlin might get more involved in bailout packages.
The rally continued in afternoon trading after the Federal Reserve released its Beige Book, saying the U.S economy was still moderately expanding but slowed in some areas.
Meanwhile, investors were looking forward to President Obama's Thursday speech before Congress, in which Obama is expected to initiate job-creating and tax-cutting plans to boost the weak economy.
The Dow Jones industrial average rallied 275.56 points, or 2.47 percent, to 11,414.86. The Standard & Poor' s 500 jumped 33.38 points, or 2.86 percent, to 1,198.62. The Nasdaq Composite Index surged 75.11 points, or 3.04 percent, to 2,548.94.
