Stocks surge as fears about Europe ebb

Associated Press

NEW YORK

A broad rally broke a three-day losing streak in the stock market Wednesday as fears about Europe’s debt crisis ebbed.

Stocks rose sharply after a German court backed the country’s role in bailing out other European nations. The Dow Jones industrial average jumped 200 points in the first hour of trading and continued to climb throughout the day, ending up 275 points. The afternoon gains came after Italy’s Senate approved a deficit-cutting package and the Federal Reserve reported that U.S. business conditions are improving.

Traders also were speculating that President Barack Obama would announce a $300 billion jobs package made up of tax cuts, state aid and infrastructure spending in an address to Congress tonight.