A broad stock rally broke a three-day losing streak on Wall Street. Stocks rose in early trading after a court backed Germany's role in bailing out other EU countries. Indexes rose more in the afternoon after Italy approved a cost-cutting package and the Federal Reserve reported that U.S. business conditions are improving.
Bank of America jumped 7 percent after two top executives left the company as part of a broad management shake-up. Yahoo rose 5 percent after announcing that CEO Carol Bartz had been fired.
The Dow Jones industrial average jumped 275.56, or 2.5 percent, to close at 11,414.86.
The Standard & Poor's 500 index gained 33.38, or 2.9 percent, to 1,198.62.
The Nasdaq composite climbed 75.11, or 3 percent, to 2,548.94.
For the week:
The Dow is up 174.60, or 1.6 percent.
The S&P 500 is up 24.65, or 2.1 percent.
The Nasdaq is up 68.61, or 2.8 percent.
For the year to date:
The Dow is down 162.65, or 1.4 percent.
The S&P 500 is down 59.02, or 4.7 percent.
The Nasdaq is down 103.93, or 3.9 percent.