JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. climbed more than 13 percent as Senate leaders vowed to resume work on the bailout plan this week after its rejection spurred the market's steepest decline in two decades. Hess Corp. and Schlumberger Ltd. added more than 5.8 percent as optimism about the plan helped oil rebound from a $10-a-barrel drop. All 10 industries in the S&P 500 advanced at least 1.3 percent.
The S&P 500 rose 58.34 points, or 5.3 percent, to 1,164.73, its biggest advance since July 2002. The Dow Jones Industrial Average jumped 485.21, or 4.7 percent, to 10,850.66 and earlier gained more than 500 points. The Nasdaq Composite Index added 5 percent to 2,082.33. More than four stocks climbed for each that fell on the New York Stock Exchange.
Even with the advance, the S&P 500 had its worst month since 2002, with a decline of 9.2 percent, and tumbled 9 percent for the quarter. The cost of borrowing dollars overnight rose the most on record as banks hoarded cash after the defeat of the bailout plan by Congress.
The Dow average lost 6 percent in September, and the Nasdaq fell 12 percent. The S&P 500's retreat since the end of June was its fourth-straight quarterly decline, the longest stretch since 2001. The Dow slipped 4.4 percent and the Nasdaq lost 9.2 percent.
Brazilian stocks rebounded from the biggest plunge in a decade after U.S. lawmakers said they intend to revive a $700 billion bank rescue and Morgan Stanley advised buying electric utilities as ``defensive'' investments. The Bovespa index rose 4.8 percent to 48,242.90 at 12:58 p.m. New York time. The index is poised for a monthly drop of 13 percent, the worst performance in six years.
European stocks rose, while Asian shares declined. The FTSE 100 regained its poise after Monday’s heavy losses, rallying 1.7 per cent. The FTSE 100 finished the session 83.7 points, or 1.7 per cent, higher at 4,902.4. Japan's stocks plunged to a near four-year low. The Nikkei 225 Stock Average declined 483.75, or 4.1 percent, to close at 11,259.86 in Tokyo. Russia's Micex Index fell 2.9 percent after a halt in trading earlier today. The MSCI Emerging Markets Index lost 0.5 percent to 768.18, extending yesterday's 5.9 percent plunge, which was the worst since the Asian financial crisis in 1997.