Investors were encouraged by China which reported better-than-expect economic data. China's industrial production rose in October while inflation is under control.
A weaker dollar lifted stocks, gold and oil prices after Federal Reserve officials signaled to keep current interest rates.
Federal Reserve officials speaking late Tuesday noted that the economic recovery is likely to be weak and reiterated that the central bank will keep rates low.
On Wednesday, gold jumped to a record high in the early trading and crude also climbed on the New York Mercantile Exchange.
Macy's, the largest U.S. department store, lost over 8 percent after reporting its full-year forecast trailed analyst estimates, though the company posted a smaller loss in its third quarter.
The Dow Jones average rose 44.29, or 0.4 percent, to 10,291.26.The Standard & Poor's 500 index rose 5.50, or 0.5 percent, to 1,098.51 and topped 1,100 for the first time since last year. The Nasdaq composite index rose 15.82, or 0.7 percent, to 2,166.90.
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