U.S. stock indexes closed sharply higher Wednesday as investor worries about the European economy eased.

The Dow Jones Industrial Average finished the day 2.5 percent higher at 11,415. The Standard & Poor's 500 Index was up almost 3 percent to 1,199. The NASDAQ rose more than 3 percent to 2,549.

European stocks also jumped sharply.

London's Financial Times index rose 3.1 percent to close at 5,319. The CAC-40 in Paris finished up 3.6 percent to 3,073. Frankfurt's DAX index advanced 4.1 percent to close at 5,406.

In Asia, Tokyo's Nikkei index gained 2 percent to finish at 8,763.

Hong Kong's Hang Seng index rose 1.7 percent to finish the day's trading at 20,048.

Gold fell $55.70 to $1,817.60 an ounce.

The dollar was lower against the euro and the yen.