Stocks Rally on Fed Stimulus Hopes

U.S. stocks jumped on Wednesday on increasing optimism that central bankers would move to bolster the economy. The Dow Jones Industrial Average climbed 286.84 points, or 2.37%, to 12,414.79. The S&P 500 Index advanced 29.63 points, or 2.30%, to 1,315.13. The Nasdaq Composite added 66.61 points, or 2.40%, to 2,844.72.

The U.S. economy grew moderately in most regions of the country this spring and companies kept hiring, according to a Federal Reserve survey released Wednesday.

Nasdaq OMX Group Inc (NDAQ.O) said it will offer cash and rebates totaling $40 million to compensate clients affected by the problems with Facebook Inc’s (FB.O) initial public offering, an amount well short of the losses claimed by top market makers for the IPO.

Google Inc is deploying a fleet of small, camera-equipped airplanes above several cities, the Internet search company’s latest step in its ambitious and sometimes controversial plan to create a photo-based map of the world. Google plans to release the first three-dimensional maps for several cities by the end of the year, the company said at a news conference at its San Francisco offices on Wednesday.

Men’s Wearhouse Inc. (NYSE:MW) , citing weaker corporate apparel sales, reported late Wednesday fiscal first-quarter profit slipped to $26.9 million, or 52 cents a share, from $27.4 million, or 52 cents a share, a year ago. Revenue for the quarter ended April 28 rose 1.1% to $586.6 million from $580.4 million.

Crude-oil futures finished higher Wednesday. Crude for July delivery rose 73 cents, or 0.9%, to settle at $85.02 a barrel on the New York Mercantile Exchange.