U.S. stocks shot higher on Wednesday, rebounding from six consecutive days of declines that pushed the major averages into correction territory. (Tweet This)

In addition to an oversold bounce, some analysts also attributed the gains to comments from the Fed's William Dudley that a September rate hike looks "less compelling" and a strong durable-goods report.

The major averages closed about 4 percent higher for their best day since 2011, with the S&P 500 rising out of correction territory. The index fell into correction during Monday's selloff.

[Programming note: CNBC will air a special report on the market recovery at 7 p.m., ET]

Among the 10 S&P 500 sectors, tech, financials, health care, consumer discretionary and staples are all out of correction territory. The companies in the index gained about $640 billion in market capitalization on Wednesday, but have still lost $268 billion in capitalization this week and are down $1.3 trillion over the last week-and-a-half.

The Nasdaq Composite closed on the edge of correction, up 4.2 percent on the day. The Dow Jones industrial average remains in correction territory.

Gains accelerated into the close, with the Dow Jones industrial average ending up about 620 points after rising as much as 637 points.

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On Tuesday, stocks failed to close higher. The Dow and S&P 500 followed Monday's sharp selloff with an initial bounce of nearly 3 percent or more before ending more than 1 percent lower for their biggest reversal since October 2008.

"It's a nice reflex rally today but it still hasn't come close to retracing... the decline," said Marc Chaikin, CEO of Chaikin Analytics. "This is a bounce, just short covering. Very typical."

Stocks traded in a range throughout the day, paring gains after European stocks closed lower and spiking Dudley's comments.

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The Russell 2000 closed more than 2 percent higher. Earlier, the index briefly fell into negative territory as GrubHub briefly plunged nearly 10 percent on a downgrade by Barclays. The stock closed down about 6 percent.

"From what I've seen so far this morning in trades it looks more like bouncing," said Tim Dreiling, senior portfolio manager with the Private Client Reserve at U.S. Bank. "It's more risk-on."

He said it's "a coin toss on (whether) will we see the last hour of trading deteriorate."