The Dow and other U.S. indexes fell over the previous three days on worries over weakness in the U.S. job market and concerns that Europe's debt woes could lead to a global economic recession.
The Dow surged 275.56 points, or 2.47 percent, to close at 11,414.86. All 30 stocks in the Dow average rose.
The Standard and Poor's 500 index jumped 33.38, or 2.86 percent, to 1,198.62. All 10 company groups that make up the S&P index rose. The Nasdaq composite shot up 75.11, or 3.04 percent, to 2,548.94.
The German court ruling also pushed the prices of Treasury securities lower as investors were more willing to hold risky assets such as stocks. Treasury prices have been rising over the last week, sending their yields lower, as demand for lower-risk investments increased.
The yield on the 10-year Treasury note rose to 2.05 percent. Its price fell 50 cents per $100 invested. The yield traded at 1.97 percent late Tuesday. Gold, another traditional safe haven, fell $56, or 3 percent, to $1,817 an ounce.
Historically low Treasury rates are prompting some institutional investors to see stocks as a better value.
Yahoo and Bank of America rose sharply after announcing the departures of key executives after the market closed Tuesday. Yahoo gained 5 percent, to $13.61, after announcing that CEO Carol Bartz had been fired.
Bank of America jumped 7 percent, to $7.48, after the bank announced a management reorganization that will result in two top officers leaving. Bank of America shares have fallen 48 percent this year through Tuesday, compared with a 7 percent drop in the S&P 500 index.
Financial companies were the top performing group in the S&P 500 index. JP Morgan Chase & Co., Goldman Sachs, and Wells Fargo each rose more than 3 percent.
Urban Outfitters fell 2 percent, to $25.26, after the retailer said its sales were slipping in the current quarter. The computer-graphics company Nvidia Corp. jumped 8 percent, to $14.25, after the company said it expected its revenues to be higher than Wall Street analysts forecast.
A Federal Reserve survey found that the economy grew modestly in its 12 bank regions in July and August as consumers spent more.
Nine stocks rose for every one that fell on the New York Stock Exchange. Volume was below average at 3.9 billion shares.
