The Dow Jones Industrial Average reversed a 110-point drop in the final hour of trading as investors overcame concern about a disappointing auction of Treasuries notes. JPMorgan Chase & Co., Bank of America Corp. and Alcoa Inc. led the advance after the government reported a 3.4 percent increase in demand for longer lasting products such as refrigerators, airplanes and computer chips and a 4.7 percent gain in new-home purchases.
The Standard & Poor’s 500 Index added 1 percent to 813.88 and has jumped almost 11 percent in March for its best gain since 1991. The Dow gained 89.84 points, or 1.2 percent, to 7,749.81. The Nasdaq Composite Index increased 0.8 percent to 1,528.95. Almost three stocks rose for each that fell on the New York Stock Exchange.
The S&P 500 erased about half of yesterday’s decline, which was spurred when Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Timothy Geithner proposed tighter regulations on the financial industry. The benchmark U.S. stock index is up 20 percent since March 9 amid speculation the government’s plan to help investors buy toxic assets will revive credit markets.