The Dow gained 260.37 points, or 1.1 percent, to 23,138.82.
The Dow closed nearly 5 percent higher, recovering some of its losses from a four-day selloff. On Wednesday, volume was substantially lighter than average for the broad market represented by the S&P 500 (SPX). The Dow rose for the first time in a single trading session of more than 1000 points. Thursday would make eight out of nine.
Although Wall Street's main fear gauge, the Cboe Volatility Index (VIX), fell sharply Wednesday, it still remained above 30 for much of the day, indicating that market participants continued to be uneasy.
USA stocks staged a last-minute turnaround that put the market on track to end the volatile week with a gain.
United States stocks are set to open lower - a sign the biggest one-day market rally since 2009 will be short-lived.
However Chinese stocks were lower while there was also a mixed response in Europe with France's Cac 40 opening more than 1% higher but Germany's Dax slipping back.
Sky over New York City turns blue after transformer explosion
CBS New York reports NYPD said a transformer exploded at the utility company's facility in Astoria shortly after 9 p.m. The airport is cautioning passengers to check with their carriers, as "may flights are departing, some are not".
President Trump's criticism of the Fed and Powell has shaken Wall Street as it weathers its worst December in history.
ENERGY: Benchmark U.S. crude jumped 98 cents to $45.59 per barrel in electronic trading on the New York Mercantile Exchange. Recently, Trump has unsettled markets by signaling the potential firing of Federal Reserve Chairman Jerome Powell and a trade war escalation.
Bank stocks fell along with Treasury yields, which affect interest rates on mortgages and other loans.
But investors weighed that against a dour housing report from S&P/Case-Shiller, which showed the growth in home prices was at a two-year low.
The U.S. dollar strengthened to 111.13 yen from 110.41 yen on Monday.
Petroleum-linked shares also had a good session, with Chevron winning 6.3 per cent and Halliburton 5.1 per cent following the rally in oil prices. Marathon Petroleum rose 1.9 percent to $55.36.
Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE and a 2.15-to-1 ratio on the Nasdaq. Shares fell in Taiwan, Singapore and Indonesia but rose in Thailand.
Markets have been marked by turbulence in recent weeks as the US government shutdown, higher USA interest rates and the U.S. Hong Kong's Hang Seng advanced 0.4 per cent to 25,582.53 and Seoul's Kospi added 0.8 per cent to 2,044.18.