Stock rallied as banks/financials stocks pushed higher following an upgrade of the sector by Wells Fargo and a successful bond offering in Portugal.

The Dow Jones Industrial Average gained 83.56 points, or 0.72 percent, to close at 11,755.44. The S&P 500 index climbed 11.48 points, or 0.90 percent, at 1285.96. The Nasdaq index rose 20.50 points or 0.75 percent to 2737.33.

The Federal Reserve’s Beige Book report indicated that the U.S. economy continues to show moderate expansion, although joblessness and the housing market remain weak.

ITT (NYSE: ITT) skyrocketed 16.52 percent after the company said it plans to split itself into three public companies.

Oil futures added 0.77 percent to almost $92 per barrel, gold futures also rose.

Bonds fell as the 10-Year Treasury yield edged up to 3.36 percent.

European stock indices also rallied following the well-received Portuguese bond auction.

Germany’s DAX surged 1.83 percent, France's CAC 40 index soared 2.15 percent, and Britain's FTSE-100 climbed 0.61 percent.