Stocks rallied on Wednesday, lifted by technology and industrial shares after Spain unveiled an austerity plan that further eased investor concerns about the fiscal health of some European countries.

International Business Machines Corp provided the top lift to the Dow, adding 4.2 percent to $132.15.

Intel Corp was the Nasdaq's most active stock, up 3.6 percent at $26.09.

Investors have been worried about a possible European credit and economic crisis as sovereign debt problems in Greece appeared to spread to other economies.

But Spain revealed a plan on Wednesday to slash civil service pay and cut public-sector jobs, just a few days after EU finance ministers approved a 750 billion euro ($1 trillion) bailout package to stem the debt crisis, cheering investors.

There was some concern about whether Spain would be serious about the measures it would have to take, so the moves it's making is a positive signal, said John Massey, portfolio manager at SunAmerica Asset Management in Jersey City, New Jersey.

Massey said cyclical companies with a lot of international exposure, including those in the tech and industrial sectors, had been especially vulnerable to the issues in Europe, adding: That's why they're having a relief rally today.

The Dow Jones industrial average <.DJI> gained 155.61 points, or 1.45 percent, to 10,903.87. The Standard & Poor's 500 Index <.SPX> rose 16.34 points, or 1.41 percent, to 1,172.13. The Nasdaq Composite Index <.IXIC> jumped 49.34 points, or 2.08 percent, to 2,424.65.

(Additional reporting by Ryan Vlastelica; Editing by Jan Paschal)