German court, Fed fuel rebound in US stocks

US stocks jumped on Wednesday after a German court ruling helped clear the way for a eurozone bailout plan and the Federal Reserve said the US economy was still growing slowly. The Dow Jones Industrial Average rose 275.56 points (2.47 percent) to close at 11,414.86, in a healthy rebound after three consecutive trading days of triple-digit losses. The broader S&P 500 surged 33.38 points (2.86 percent) to 1,198.62, while the tech-heavy Nasdaq Composite rallied 75.11 points (3.04 percent) to 2,548.94. US and European markets rebounded after Germany's Constitutional Court ruled that Germany could participate in a eurozone-wide bailout mechanism, removing an obstacle to rescues of Greece and other struggling countries. The gains continued after the Federal Reserve reported that the US economy has continued to grow slowly, offering a slightly better assessment of the US economy than the grim picture depicted by other recent indicators.The Dow shed about four percent in the last three trading days amid fears of the eurozone's debt crisis and a possible double-dip recession in the United States, leading some analysts to say that it was due for a bounce. "We had three straight days of losses, and got oversold on the short term," said Scott Marcouiller, chief technical market strategist for Wells Fargo Advisors. But he warned: "There are still a lot of worries about global growth and fears of a recession and uncertainty surrounding Europe and the debt problems." Wall Street also got a boost from a pair of major corporate shake-ups announced after the markets closed Tuesday that were welcomed by investors. Yahoo! surged 5.4 percent after the unexpected firing late Tuesday of chief executive Carol Bartz, who was widely blamed for failing to turn around the ailing Internet firm amid fierce competition from Google and Facebook. Bank of America enjoyed a 7.0 percent bounce after it announced a reshuffle of its management team, including the ouster of two top executives.Shares of Nvidia rocketed up 8.1 percent after the California chipmaker forecast stronger than expected sales for 2013. Bond prices fell. The yield on the 10-year Treasury note rose to 2.04 percent from 1.98 percent late Tuesday, while that on the 30-year bond jumped to 3.35 percent from 3.24 percent.Bond prices and yields move in opposite directions.