NEW YORK (CNNMoney.com) -- U.S. stocks advanced Wednesday following an eleventh-hour rally in the previous session after a reported surge in Chinese exports relieved some investor fears about Europe's debt crisis and its impact on the global economy.
The Dow Jones industrial average (INDU) gained 59 points, or 0.6%, and the S&P 500 index (SPX) rose 7 points, or 0.7%. The Nasdaq composite (COMP) edged up 18 points, or 0.8%,
Despite the continued gains, analysts expect stocks to continue to go back and forth.
"There's a lot of meandering and indecision among investors, and they didn't set the tone in the market yesterday until the last hour of trade," said Art Hogan, chief market strategist at Jefferies & Co.
Hogan said Europe's financial instability and its effect on a worldwide economic upturn continue to worry investors, but an unofficial report showing that Chinese exports spiked 50% in May compared to a year earlier calmed some fears Wednesday.
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He said that while there's been some moderation in China's "explosive economic growth," the surge in exports suggests that Europe's troubles have not softened demand for Chinese goods.
Economy: Fed chairman Ben Bernanke testified before the House Budget Committee regarding economic and financial conditions Wednesday. He said he expects the economy to grow over the next two years, but urged policymakers to tackle the deficit.
Bernanke will also speak in Richmond, Va., at a forum on the job market late Wednesday.
A report from the Department of Commerce showed that wholesale inventories rose 0.4% in April, below analysts' expectations of a 0.5% increase.
Investors will also be taking in the Federal Reserve's "beige book" reading on the nation's 12 economic districts in the afternoon.
World markets: Stocks in Europe also climbed in afternoon trading. The DAX in Germany rose 1.7% and France's CAC 40 rose almost 1%. Britain's FTSE 100 increased 0.4%.
Asian markets ended mixed. Japan's benchmark Nikkei index dipped 1% but the Shanghai Composite rallied 2.8% and Hong Kong's Hang Seng index gained 0.7%.
Dollar and commodities: The euro continued to stabilize against thedollar. The greenback fell 0.5% against the shared currency to $1.2036. The buck also fell 0.7% against the British pound and 0.1% against the Japanese yen.
U.S. light crude oil for July delivery climbed $2.00, or 2.8%, to $73.99 a barrel.
After closing at a record high Tuesday, gold for August delivery slipped $12.20, or 1%, to $1,232.20 an ounce.
Bonds: Treasury prices were slightly lower, pushing the benchmark 10-year note's yield up to 3.23% from 3.22% late Tuesday. Bond prices and yields move in opposite directions.
Trading volume: Market breadth was positive. On the New York Stock Exchange, winners beat losers nearly three to one on volume of 300 million shares. On the Nasdaq, advancers topped decliners almost two to one on volume of 550 million shares.
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