Wall Street jumps as Europe debt concerns ease

Wall Street bounced more than 2 percent on Wednesday, reversing three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis.

The Dow Jones industrial average gained 275.56 points, or 2.47 percent, to 11,414.86. The Standard & Poor's 500 Index rose 33.38 points, or 2.86 percent, to 1,198.62. The Nasdaq Composite Index added 75.11 points, or 3.04 percent, to 2,548.94.

European shares rose sharply as investors went bargain hunting after key indexes hit oversold territory in the previous session, with carmakers and German stocks among the best performers.

The STOXX Europe 600 Automobiles & Parts index rose 6.1 percent, following a 12.8 percent fall in the previous four sessions. The index's 14-day relative strength index fell to 30.4 on Tuesday, with 30 and below considered oversold.

The pan-European FTSEurofirst 300 index of top shares ended up 3.1 percent at 931.54 points after hitting a two-year closing low in the previous session, with volume 83.5 percent of its 90-day daily average.

The Nikkei average also climbed 2 % on short-covering after three days of losses, with market participants calling the move a short-term rebound amid fears about sovereign debt in Europe and a US economic slowdown. The benchmark Nikkei rose 2.0 percent to 8,763.41. The broader Topix index added 1.7 percent to 753.63.