Stocks climbed Wednesday as investors further embraced the possibility that the Federal Reserve might cut interest rates to boost the economy.

The Dow Jones Industrial Average gained 207.39 points, or 0.8%, to 25539.57 while the S&P 500 added 22.88 points, or 0.8%, to 2826.15 and the Nasdaq Composite rose 48.36 points, or 0.6%, to 7575.48.

The...