Stocks rose sharply Wednesday amid hopes of an interest rate cut. At 1 p.m. EDT on Wall Street, the Dow Jones industrial average was up 113.03 at 8,010.23, wiping out Tuesday's 36-point loss and pushing back above this year's starting point.

Broader stock indicators were also posting big gains, extending Tuesday's modest advance. The Standard & Poor's 500 index was up 16.01 at 1,045.64, and the technology-heavy Nasdaq composite index was up 38.26 at 1,736.06.Advancing issues outnumbered decliners by a 3-to-1 margin on the New York Stock Exchange, where volume came to 463.36 million shares, accelerating from Tuesday's pace.

Overseas, Frankfurt's DAX index rose 2.7 percent, London's FT-SE 100 rose 2.2 percent, and the CAC-40 in Paris rose 2.3 percent. Japanese financial markets were closed for a holiday.