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New York - Stocks gained more than 3 percent after Federal Reserve minutes showed the central bank sees the recession ending "before long" though it said unemployment will remain a problem.

Technology stocks had gained more than 3 percent following encouraging earnings, while a slew of economic reports fueled the notion the economy was showing stronger signs of a turnaround and boosted the broader market. The Fed's forecast bolstered Wall Street's enthusiasm.

Readings on consumer prices, New York manufacturing, industrial production and mortgage applications each provided hope for the economy. While none was particularly buoyant, each beat analyst expectations.

The Fed upped its unemployment forecast for 2009 to as high as 10.1 percent and said inflation would grow as well though it would remain relatively low. But the strong rally only picked up steam after the release of the Fed Open Market Committee minutes.

A week-long rally began Monday thanks to bank stocks, while Wednesday's was driven by technology leaders. Housing and commodities brought a modest gain to the markets on Tuesday and were strong contributors again Wednesday.

The Dow and S&P 500 were on track for their best three-day gains since the beginning of April.