US stocks surged Wednesday on the back of gains from financial stocks after Wall Street broke a week-long losing streak. The Dow Jones Industrial Average jumped 121.10 points (1.24 percent) to 9,864.72 by 1600 GMT. The blue chip index had gained slightly Tuesday, ending a seven- session losing streak. The tech-rich Nasdaq composite index climbed 24.01 points (1.15 percent) to 2,117.89 and the S&P 500 index, a broader measure of the markets, advanced 12.91 points (1.26 percent) to 1,040.97. The market advanced after State Street Corp, an institutional money-management and custodial firm, forecasted second-quarter profits well above analysts' projections, boosting investors' expectations for earnings of financial companies. The rosy projection was based on improving revenue trends seen by the Boston- based company. The second quarter earnings season begins next week. Wall Street is also keeping a close eye on how Europe will deal with 'stress tests' to determine the health of the major banks. The tests will be the main talking point when analysts seek clear guidance from the European Central Bank on Thursday. 'Financials are moving higher to help the advance as details that may provide some clarity to how the European stress tests of the financial industry were conducted appear to be imminent, while an upbeat outlook from State Street Corp is aiding sentiment in the group,' analysts at Charles Schwab & Co said in a note to clients. Concerns that the US economic recovery could stall continue to grip the market. On Tuesday, an industry survey suggested the key US services sector suffered a sharper-than-expected fall in growth in June, adding to concerns of a jobless recovery. 'The debate over whether the economy will move back into a double-dip recession has evolved to the worry of the day, putting the European debt situation and the Gulf of Mexico oil spill on the back burner,' said Frederic Dickson, chief market strategist of D.A. Davidson & Co. State Street was among the top gainers Wednesday, jumping 10.86 percent to 36.97 dollars. JPMorgan Chase rose 2.50 percent to 37.24 dollars while Bank of America gained 2.06 percent to 14.35 dollars. Bonds retreated. The yield on the 10-year US Treasury bond rose to 2.943 percent from 2,932 percent on Tuesday while that on the 30-year bond climbed to 3.915 percent from 3.892 percent. Bond yield and prices move in opposite directions. 