US stocks surged 2 percent on Wednesday on hopes European officials would take drastic measures to stabilise eurozone finances. Stocks extended gains after an official said the US would be ready to back a larger European financial stability fund. The growing eurozone debt crisis has sunk markets in recent weeks, making any step toward resolution important to sustained market recovery.
US economic data provided another bullish factor for stocks. Private employers added the biggest jobs gains in three years and manufacturing grew for a 16th month running. The Dow Jones industrial average gained 253.54 points, or 2.30 percent, to 11,259.56. The Standard & Poor's 500 Index climbed 25.76 points, or 2.18 percent, to 1,206.31. The Nasdaq Composite Index advanced 57.16 points, or 2.29 percent, to 2,555.39. The S&P 500 traded above its 14-day moving average for the first time in eleven sessions and was having its best day in almost a month, pushing through the recent resistance point of 1,200.