stocks Rally, Shaking Off a Three-day Slump

U.S. stocks rallied on Wednesday, aftera stronger-than-expected report on new-home sales and European Central Bank President Mario Draghi renewed a pledge to keep monetary policy loose for an extended period. At close, the Dow Jones Industrial Average gained 154.19 points, or 0.90%, to 17,210.06. The S&P 500 rose 15.53 points, or 0.78%, to 1,998.30. The Nasdaq Composite added 46.53 points, or 1.03%, to 4,555.22.

European Central Bank President Mario Draghi renewed a pledge to keep monetary policy accommodative for as long as it takes to push ultra-low inflation in the euro zone closer to 2 percent.

Sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course. The Commerce Department said on Wednesday sales jumped 18.0 percent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008 and marked the second straight month of gains.