Stocks rallied, with the Dow extending early gains to rise 2 percent on Thursday after Germany's lower house approved new powers for the euro zone's crisis fund and U.S. economic data was stronger than forecast.

The Dow Jones industrial average was up 220.28 points, or 2.00 percent, at 11,231.18. The Standard & Poor's 500 Index was up 22.33 points, or 1.94 percent, at 1,173.39. The Nasdaq Composite Index was up 45.32 points, or 1.82 percent, at 2,536.90.

(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)