Investors also cheered Greece's approval of austerity measures on Wednesday, which are meant keep the country from defaulting.
"Some of the clouds that have hung over this market have let up," said Bruce McCain, chief investment strategist with Key Private Bank. "The Greek issue isn't resolved, but one forward step was taken and it gets rid of a bit of that uncertainty -- and you can say the same thing for BofA."
The Dow Jones industrial average (INDU) added 73 points, or 0.6%, to close at 12,261.
The S&P 500 (SPX) gained 11 points, or 0.8%, to 1,307; and the Nasdaq Composite (COMP) added 12 points, or 0.4%, to 2,740
"The mood in the last few days has shifted in the market," McCain said. "You have shares of risk-heavy companies coming back, and there's a return of some optimism among investors -- particularly as the quarter ends this week and we head into earnings season next month."
Greece's vote on Wednesday follows a prolonged debate of whether the country should adopt severe spending cuts and tax increases, in exchange for a financial aid package from the European Union and the International Monetary Fund.
While Greece may have addressed its fiscal situation -- at least for the moment -- there are plenty of other debt-stricken eurozone countries to worry about. And the U.S. economy is still not on solid ground.
Energy and metal commodities rallied Wednesday, with oil prices surging after the Energy Department reported a bigger-than-expected drop in oil inventories.
Oil for August delivery settled up $1.88, or 2%, to $94.77 a barrel.
Gold futures for August delivery rose $10.20 to $1,510.40 an ounce; while silver rallied 3.3% to $34.76 an ounce.
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