The Dow Jones industrial average rose by close to 1 percent to session highs in midday trade on Wednesday after Citigroup announced it had borrowed $500 million directly from the Federal Reserve.

Shares of Citigroup, which were the second-top drag on the blue-chip index, pared some of their losses following the bank's announcement to be down 0.7 percent at $47.74.

The Dow Jones industrial average was up 114.30 points, or 0.87 percent, at 13,205.16. The Standard & Poor's 500 Index was up 12.39 points, or 0.86 percent, at 1,459.51. The Nasdaq Composite Index was up 24.80 points, or 0.98 percent, at 2,546.10.

Citigroup