NEW YORK, New York - As Treasury yields fell Wednesday, U.S. stock markets extended a rally that began on Monday while the U.S. dollar got steam-rolled.

For three straight days, all the major U.S. stock indices have racked up solid gains.

Hodge said economic data released Tuesday is also a point of hope for investors looking for the Federal Reserve to change course on interest rate hikes as the central bank tries to bat down inflation.

"The market is just starting to get some indication that economic data moving forward is likely to slow," Cliff Hodge, chief investment officer at Cornerstone Wealth told CNBC Wednesday. "The knock-on effects from there, perhaps, gives the Fed a bit more breathing room."

The Nasdaq Composite did best percentage-wise, surging 246.50 points or 2.25 percent to close Wednesday at 11,199.12.

The Dow Jones industrials jumped 337.12 points or 1.07 percent to 31,836.74.

The Standard and Poor's 500n added 61.77 points or 1.63 percent to 3,859.11.

On foreign exchange markets, as U.S. Treasury yields softened, sellers pounced on the U.S. dollar. The euro jumped sharply to 0.9966 by the New York close Wednesday. The British pound rallied to 1.1469. The Japanese yen advanced to 147.92. The Swiss franc was stronger at 0.9947.

The Canadian dollar surged to 1.3603, as did the Australian and New Zealand dollars, to 0.6396 and 0.5758 respectively.

Stocks overseas were mixed. In London, the benchmark FTSE 100 was off 0.01 percent. The German Dax rose 0.94 percent. The Paris-based CAC 40 surged 1`.94 percent.

In Tokyo, the Nikkei 225 rallied 275.38 points or 1.02 percent to close Tuesday at 27,250.28.

The Australian All Ordinaries advanced 15.30 points or 0.22 percent to 6,993.70.

In New Zealand, the S&P/NZX 50 surged 119.95 points or 1.11 percent to 10,902.21.

South Korea's Kospi Composite edged down 1.56 points or 0.07 percent to 2,234.60.

The Hang Seng in Hong Kong, which lost more than a thousand points on Monday, was flat Tuesday, closing 15/10 points or 0.10 percent higher at 15,165.59.

China's Shanghai Composite inched down 1.27 points or 0.04 percent to 2,976.28.