U.S. stocks soared on Wednesday, with major indexes hitting a two-week high, after the world's major central banks took coordinated action to boost liquidity in the world financial system.

The Dow Jones industrial average surged 490.05 points, or 4.24 percent, to 12,045.68. The Standard & Poor's 500 rallied 51.77 points, or 4.33 percent, to 1,246.96. The Nasdaq Composite Index soared 104.83 points, or 4.17 percent, to 2,620.34.

Financials and Materials were taking the lead in the market. JP Morgan Chase soared more than 8.2 percent, the best performer in the Dow's 30 components.

The euphoria came after the world's major central banks, including the European Central Bank, Federal Reserve, Bank of England, and the central banks of Canada, Japan and Switzerland decided to jointly take action to "enhance their capacity to provide liquidity support to the global financial system."

Also boosting sentiment, China cut its banks' reserve requirements for the first time in nearly three years to prevent the economy from abrupt slowdown.

Wednesday's economic data came in better than expected, also gave the market a strong lift.

The ADP National Employment Report showed that U.S. employers added 206,000 jobs in November, much higher than market expectations.

Pending home sales, according to figures from the National Association of Realtors, increased 10.4 percent in October, which was the biggest gain since November 2010.

Meanwhile, business activity in the Midwest grew faster than estimates in November as orders surged. The Institute for Supply Management-Chicago business barometer rose to 62.6 from 58.4 in October, well above expectations.