U.S. stocks jumped 1 percent on Wednesday, pushing the Dow into positive territory for the year, as the euro-zone rescue fund was set to get approval from all EU members.
Momentum buying was partly in play, analysts said. The S&P 500 has gained 13.5 percent from the intraday low hit last week on Tuesday and was on track for its largest seven-day rally since March 2009.
It feels as though the market is experiencing the possibility of a melt-up, said Hank Smith, chief investment officer of Haverford Trust Co. in Philadelphia.
You've got a lot of money on the sidelines that just didn't want to take the risk of being invested. That could come back in.
Slovakian lawmakers struck a deal to ratify more powers for the euro zone's rescue fund, known as the EFSF, effectively ending a crisis that threatens the euro's survival and which has weighed on stocks and other risky assets for months.
Slovakia is the last country in the 17-member currency zone left to approve the revamped EFSF.
Bank shares led the advance again, with the KBW Bank Index <.BKX> shot up 4.1 percent. Citigroup
The Dow Jones industrial average <.DJI> was up 159.92 points, or 1.40 percent, at 11,576.22. The Standard & Poor's 500 Index <.SPX> was up 18.51 points, or 1.55 percent, at 1,214.05. The Nasdaq Composite Index <.IXIC> was up 31.46 points, or 1.22 percent, at 2,614.49.
The S&P 500 traded above 1,200 for the first time in three weeks, taking the benchmark near the upper end of a range it has been stuck at since early August.
If the index is able to stay above resistance at 1,215, that would be seen as a bullish signal, analysts said.
Among earnings, PepsiCo Inc
(Reporting by Caroline Valetkevitch; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)