NEW YORK (CNNMoney) -- U.S. stocks rallied Wednesday, with the Dow and S&P 500 logging their best gains of the year, as investors grew hopeful that more stimulus for the global economy is around the corner.
"There's a lot of optimism from rumors that there will be some type of stimulus coming really soon," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "This might light the fuse and spark [the markets] higher."
The Dow Jones industrial average (INDU) jumped 287 points, or 2.4%, its best one-day jump since Dec. 20. The day's gains pushed the blue-chip index back into positive territory for 2012. The S&P 500 (SPX) rose 30 points, or 2.3%, its best daily performance since Dec. 20. The Nasdaq (COMP) added 67 points, or 2.4%.
Investors were encouraged after Atlanta Fed president Dennis Lockhart, who is a member of the Federal Reserve's policy-setting committee, said that continuing Operation Twist is now "an option on the table." The policy, which swaps short-term bonds for ones with a longer duration in order to keep interest rates low, is currently set to expire at the end of the month.
Stimulus hopes also grew for Europe. While the ECB left interest rates steady at 1% on Wednesday, the decision was not unanimous.
"A few members would have preferred to have a rate cut today," said bank president Mario Draghi. Many analysts expect the ECB to cut interest rates by a quarter percentage point at its next meeting in July, which would bring rates to a record low.
Draghi also said the central bank will continue to monitor developments closely and stands ready to act if necessary.
The ECB is under pressure to take additional steps to support the economy and restore confidence in financial markets. But Draghi stressed that monetary policy cannot make up for a lack of action by euro-area political leaders.
"There are some problems in the euro area that have nothing to do with monetary policy," said Draghi. "I don't think it would be right for monetary policy to fill other institutions' lack of action."
Still, his comments were enough to spark optimism that leaders will take action as soon as needed.
The dollar slid against the euro and the British pound, but gained strength against the Japanese yen.
Oil for July delivery rose 73 cents to settle at $85.02 a barrel.
Gold futures for June delivery climbed $17.30 to settle at $1,634.20 an ounce.
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