More good news out of Europe continues to provide the fuel to drive the current risk-asset rally.

On Wednesday, the S&P 500 climbed 17.19 points, or 1.44 percent, to trade at 1,212.73 at 10:47 a.m. ET.  The Dow Jones Industrial Average rallied 122.34 points, or 1.07 percent, to trade at 11,538.6.  The Nasdaq Composite rose 1.44 percent.

Stock indices in Germany and France are sitting on sizable gains and the euro has jumped against the U.S. dollar.

At 9:00 a.m. ET, European Commission President Jose Barroso urged the European Parliament to strengthen banks and continue to support Greece.

Earlier, European Economic and Monetary Affairs Commissioner Olli Rehn said the Eurozone is reaching a consensus to address the European debt crisis, which he thinks is solvable, according to Bloomberg.

Slovakia, the only Eurozone member to not yet approve the proposed expansion of the union's bailout fund, initially concerned investors, especially after Prime Minister Iveta Radicova failed to push the measure through her coalition government.

However, on Tuesday, Slovak opposition party Smer indicated that it was willing to work with Radicova to strike a deal to approve the expansion.  

The European situation continues to inch closer and closer to some sort of solution, said Brad Bechtel, managing director at foreign exchange services firm Faros Trading.

Others, however, are more skeptical and believe any viable solution needs much larger than what Eurozone policymakers are currently hinting.   

Nouriel Roubini, chairman of Roubini Global Economics, told Bloomberg TV that it would take at least 2 trillion the next few weeks.