Stocks rallied sharply on a slew of good economic data, including jobs, productivity and regional growth.

The Dow Jones Industrial Average surged 249.76 points, or 2.27 percent, to 11,255.78. The S&P 500 index gained 19.47, or 1.64 percent, to 1,206.07. The Nasdaq composite advanced 51.20, or 2.05 percent, to 2,549.43.

Payroll firm ADP Employer Services said small businesses added 93,000 workers in November, well above analysts’ forecasts, suggesting a strong non-farm payroll report this Friday.

The Institute of Supply Management said its manufacturing activity index climbed in November for the sixteenth straight month.

Also, The Federal Reserve in its ‘Beige Book’ said the U.S. economy has improved in 10 of the Fed's 12 districts.

Oil prices surged more than 3 percent to nearly $87 per barrel.

Bond prices plunged, with the yield on the 10-year Treasury Note rising to 2.96 percent from 2.80 percent late Tuesday.

European/UK stock indices rose after ECB chief Jean-Claude Trichet hinted the central bank might buy bonds issued by EU countries.