Late rally sends Dow surging 286 points

The Dow Jones industrial average surged 286 points, its best day this year, as investors hoped that more help may be on the way for the United States and Europe from central banks.

The Dow rose 286.84 points Wednesday to close at 12,414.79. The last time the Dow gained more than 200 points was March 13. The big jump follows weeks of losses, including a 275-point plunge last Friday set off by a weak reading on the U.S. job market. Hope that European officials would find ways to ease the region's debt crisis helped launch the rally.

A speech by a Federal Reserve official also added to speculation that the Fed may take more steps to bolster the U.S. economic recovery. Federal Reserve chairman Ben Bernanke will likely be asked about more actions to help the economy when he testifies before a congressional committee on Thursday.

Companies whose stocks have been clobbered the most over the past month had some of the strongest gains yesterday. Home builders rallied, helped by strong earnings from Hovnanian Enterprises and rising applications for new mortgages.

The Standard & Poor's 500 index rose 2.30 percent to 1,315.13. The Nasdaq composite index rose 2.40 percent to 2,844.72. -- AP