NEW YORK (CNNMoney) -- Hope for a real solution to Europe's ailing economy lifted U.S. stocks Thursday, after European Central Bank president Mario Draghi said the central bank would do whatever it takes to preserve the euro.
The Dow Jones industrial average rose 212 points, or 1.7%, the S&P 500 added 22 points, or 1.7% and the Nasdaq gained 39 points, or 1.4%.
Speaking at an investment conference in London,Draghi's commentssuggest the ECB may start buying bonds again in an effort to help bring down skyrocketing borrowing costs.
"His comments were a bit of a game changer because they put the power back in the ECB to buy Spanish and Italian bonds," said Paul Zemsky, chief investment officer for ING Investment Management. "That caused a great turnaround in sentiment."
Analysts also said Draghi's comments signify that another long-term refinancing operation -- the ECB's cheap lending program aimed at preventing a credit crunch -- is back on the table.
But some analysts caution that this initial excitement may wear off, since Draghi didn't definitively outline new measures.
"This wasn't exactly a plan. It was a statement," said Kim Caughey Forest, senior equity analyst for Fort Pitt Capital Group. "It's more words, not a whole lot of action."
Europe's debt crisis remains a significant headwind for global markets, as investors have been growing increasingly convinced that Spain will need a sovereign bailout.
The euro popped in response to Draghi's comments, rising more that 1% versus the dollar. The greenback was down versus the British pound, but up against the Japanese yen.
Oil for September delivery rose 43 cents to $89.40 a barrel.
Gold futures for August delivery gained $7.00 to $1,615.10 an ounce.
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