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Stocks rallied Monday as investors bet that European finance ministers would take action soon to prop up the region's unstable economies.

Bottom Line: Stocks rose in mid-morning trade on Wall Street Tuesday as investors grew more optimistic that the Federal Reserve would announce new moves to stimulate the economy.

Some investors found reasons to be optimistic in Mr. Obama’s proposal to cut corporate taxes and increase spending for education, innovation and infrastructure.

The stock market rebounded Wednesday after a stronger-than-expected increase in pending home sales restored investors' optimism about the economy.

Investors respond positively to plan to remove up to $1 trillion in bad assets from banks' books.