By Caroline Valetkevitch

NEW YORK (Reuters) – Stocks jumped on Wednesday, giving the S&P 500 its best day since December, as talk of a rescue of Spain’s troubled banks and hopes for more monetary stimulus sparked a rebound from recent selling.

After a 6 percent fall by the S&P 500 in May that took the index below its key 200-day moving average on Friday, the market was ripe for a rebound, analysts said. Buying was strong across the broad market, with all 10 S&P 500 sectors gaining ground.

The energy, financial and technology sectors, all of which are tied to strong global demand, led gainers Wednesday. Among the big banks, shares of Bank of America (BAC.N) shot up 7.6 percent to $7.64 and shares of Morgan Stanley (MS.N) climbed 8.4 percent to $13.94, both extending gains just ahead of the close.

“I think the market was oversold. And although you didn’t get anything that concrete from the (European Central Bank) … there’s clearly an expectation in the market that Europe will eventually, and eventually means very soon, provide more liquidity for the banks,” said Hank Smith, chief investment officer at Haverford Trust Co. in Philadelphia.

European sources said German and European Union officials were seeking solutions for Spain’s weakened banks, the latest worry in the fiscally troubled euro zone. Madrid has not yet requested assistance and is resisting political conditions.

European Central Bank President Mario Draghi suggested earlier Wednesday that further stimulus to tackle the euro zone’s debt crisis would not necessarily be forthcoming, but speculation persisted that the ECB could act if financial market tensions intensify further.

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