Stocks extended a post-Brexit rally into day two on Wednesday as investors saw opportunity after a wave of selling at the beginning of the week and crude oil added to earlier gains. 

The S&P 500 was up 1.2%, the Dow Jones Industrial Average rose 1.1%, and the Nasdaq climbed 1.3%.

Crude oil continued to push higher on Wednesday, recovering alongside equities. The commodity had been under pressure over Friday and Monday's selloff as the greenback soared, deterring foreign purchases of U.S.-produced oil.

A steeper-than-expected decline in domestic inventories helped to support crude's rally. Domestic crude stocks fell by 4.1 million barrels in the week ended June 24, according to the Energy Information Administration, more than an anticipated 2.4-million-barrel drop. 

West Texas Intermediate crude oil was up 2.5% to $49.05 a barrel on Wednesday.

The shock of the United Kingdom's vote to exit the European Union last week sent global markets into a spiral Friday and Monday, eliminating $3 trillion in market capitalization. Such a steep descent over just two sessions has since presented traders with opportunity to pick up heavily oversold equities. The S&P 500 rose more than 1% on Tuesday.

Moody's downgraded its outlook for the U.K. banking sector to negative from stable due to the expected impact of the U.K.'s decision to leave the European Union. The credit agency also downgraded its outlook for 12 U.K. banks including Lloyds (LYG) - Get Report , Barclays (BCS) - Get Report and HSBC (HSBC) - Get Report . Fitch and S&P cut their credit ratings for U.K. earlier in the week.

Consumer spending in the U.S. slowed somewhat in May after a sharp increase in April, according to the Bureau of Economic Analysis. Spending rose 0.4% due largely to higher gas prices. Income remained weak in May, rising just 0.2% compared to an expected increase of 0.7%.

Pending home sales in May fell at a far-steeper pace than analysts expected, according to the National Association of Realtors' index. The measure, which looks at contracts signed where the deal has not yet closed, fell 3.7% in May to a reading of 110.8. Analysts expected a 1% decline. The first decline in nearly two years was mainly driven by tight inventory and strong demand. The measure reached its highest level since early 2006 in April. 

General Electric (GE) - Get Report moved higher after the U.S. government withdrew its designation as a systematically important non-bank financial institution. The label required increased regulation and oversight of operations. The Financial Stability Oversight Council said GE's divestitures and reorganization had lifted the designation.

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Nike (NKE) - Get Report added 1.4% despite fourth-quarter sales falling shy of estimates. Revenue jumped nearly 6% to $8.24 billion but came in short of expectations by $40 million. Quarterly earnings of 49 cents a share beat by a penny. Nike's future orders growth for June through November in North America rose 6%, less than an expected 9% increase.

Monsanto (MON) missed quarterly earnings forecasts and offered a softer full-year outlook. The agricultural company earned an adjusted $2.17 a share in its third quarter, below estimates of $2.40. Monsanto expects full-year adjusted earnings at the "low end" of its previous guidance of $4.40 to $5.10 a share.

General Mills (GIS) - Get Report added nearly 2% after raising its quarterly dividend and posting stronger-than-expected growth for fiscal 2017. The owner of Betty Crocker forecasts full-year earnings growth of at least 6%, above consensus of 4%. Its quarterly dividend was boosted by 4% to 48 cents a share.

Shire (SHPG) - Get Report rose more than 5% after announcing that a trial for its treatment of ADHD had met its primary efficacy and safety endpoints. The drugmaker will resubmit the treatment for approval to the Food and Drug Administration toward the end of 2017.

PrivateBancorp (PVTB) surged more than 20% after Canadian Imperial Bank of Commerce (CM) - Get Report agreed to purchase the commercial bank for around $3.8 billion. The deal values PrivateBancorp at $47 a share, a 31% premium to its Tuesday close. The acquisition offers CIBC access to clients in the U.S., expanding its North American reach.

Alcoa (AA) - Get Report detailed plans to separate on Wednesday morning, outlining its intentions to split its aerospace and auto-focused units from its mining business. Its mining and refining assets will retain the Alcoa brand and will continue to trade under the same ticker. Alcoa said the split is on track for the second half of the year.