Toronto stocks closed sharply higher on Wednesday helped in part by reports that suggest a U.S. economic recovery is just around the corner. The S&P/TSX composite index closed up 126.48 points at 6,604.25.

The information technology sector jumped 5%, while energy stocks gained 2%.

Celestica climbed $1.94 to $28.45, while Descartes Systems jumped 69¢to C$5.12. Nortel Networks finished up 20¢ at $2.95.

In the energy sector, Petro-Canada moved ahead $1.69 to $46.44.

The heavily weighted financial index rose nearly 2% as earnings from TD Bank Financial Group and CIBC did not deliver any surprises on bad loans.

Shares of TD ended the day up 54¢, or nearly 2 percent, at $32.69 after it reported a fourth-quarter loss in line with estimates.

CIBC, which posted its first quarterly loss in nine years, shed 97¢ to $43.60.

Advancers outpaced decliners 638 to 473 while another 208 were unchanged. Volume was heavy as 242 million shares worth $2.6 billion changed hands.

In New York, the Dow Jones industrial average (rocketed 255.26 points higher, or 2.94%, to 8,931.68, while the tech-heavy Nasdaq composite index rose 43.51 points, or 3% , to 1,487.94. The broad S&P 500 climbed 25.65 points, or 2.81%, to 938.96.

Markets rallied on fresh signs of an economic recovery. Consumer spending and durable goods orders rose in October while weekly jobless claims fell to their lowest in 21 months, the U.S. government said in reports that boosted confidence in the economy.

U.S. markets will be closed on Thursday for Thanksgiving Day and will close at 13:00 ET on Friday.

The Canadian dollar ended the North American session at US63.57¢ up from US63.46¢ at Tuesday’s close.