Stocks rose on Wednesday as strong quarterly results from retailers such as Target and Lowe's lifted investor sentiment.

The Dow Jones Industrial Average traded 300 points higher, or 1.2%. The S&P 500 gained 0.9% while the Nasdaq Composite jumped 1.1%.

Target shares surged more than 16% to a record after the retailer posted second-quarter results that topped analyst expectations. The company's same-store sales, a key metric for retailers, expanded by 3.4%. Analysts expected growth of 2.9%.

Lowe's jumped around 10% on its second-quarter earnings report. CEO Marvin Ellison said the company capitalized on strong "holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results."

Source: CNBC