The Dow gained 337.32 points, or 2.9 percent to close at 12,103.58. It lost 100 points the day before.
The Standard & Poor's 500 index gained 35.95 points, or 3 percent, to 1,241.30. Only six stocks in the index fell. The Nasdaq composite index rose 80.59, or 3.2 percent, to 2,603.73.
The Spanish government pulled off a successful debt auction and gauges of business and consumer confidence in Germany rose unexpectedly. Both helped ease worries about Europe's debt crisis. The dollar fell against the euro and U.S. government bond prices dropped as traders shifted money out of the safest assets.
Borrowing costs for the Spanish government plunged at an auction of short-term debt, a sign that investors are becoming more confident in the country's ability to pay. Read more...
