IBM, the largest computer-services company, climbed as much as 5.3 percent. Intel Corp., the biggest chipmaker, gained 2.5 percent. Bank of America Corp., JPMorgan Chase & Co. and Alcoa Inc. climbed more than 4 percent. The MSCI World Index rose for the first time since Oct. 1 after falling to its cheapest valuation in more than a decade.
The S&P 500 added 5.88, or 0.6 percent, to 99.82 at 10:21 a.m. in New York. The Dow Jones Industrial Average gained 66.83, or 0.72 percent, to 9,324.4 and the Nasdaq Composite Index increased 25.59, or 1.47 percent, to 1,765.92. Five stocks rose for every two that fell on the New York Stock Exchange.
U.S. stocks fell yesterday after Treasury Secretary Henry Paulson said more banks may collapse and unprecedented global interest-rate cuts failed to convince investors the economy will avoid a recession. Paulson signaled the government may invest in banks as the next step in trying to resolve the deepening credit crisis.
Canadian stocks rallied for a second day, led by Research In Motion Ltd., after International Business Machines Corp.'s earnings and forecast bolstered optimism for economic growth. The Standard & Poor's/TSX Composite Index gained 3.1 percent to 10,368.30 at 9:55 a.m. in Toronto, extending to a second day a rebound from a five-day plunge that sent it to a three-year low.
U.K. stocks rebounded, led by banks and mining companies as investors speculated a 10 percent decline this week on the FTSE 100 Index may have been overdone. The benchmark FTSE 100 index climbed 63.87, or 1.46 percent, to 4,430.56 at 3:06 p.m. in London.
German stocks rebounded from the worst three-day slump since July 2002 as banks gained on speculation governments will step up measures to shore up financial markets. The DAX added 1.6 percent to 5,094.12 as of 3:11 p.m. in Frankfurt, following a 14 percent decline in the previous three days.
Asian stocks gained after four of the region's central banks cut interest rates, joining a global effort to limit the economic impact of the worst financial crisis since the Great Depression.
The MSCI Asia Pacific Index added 1 percent to 92.33 as of 7:01 p.m. in Tokyo, paring gains of 2.8 percent. The advance ended a five-day, 16 percent drop. The index fell 7.4 percent yesterday, the most since April 1990, on concern the credit crisis will topple more banks and slowing growth will cut demand for exports.
Japan's Topix Index rose 0.7 percent to 905.11, led by Nintendo Co. and Mitsubishi Corp., after the measure became the only benchmark index in Asia to fall below book value and the Bank of Japan pumped $20 billion into the financial system. Nikkei 225 Index lost 0.5% and ended the session at 9,157.49, lower 45.83 points.
Australia's S&P/ASX 200 Index fell 1.5 percent, led by Commonwealth Bank of Australia after it sold shares at a discount. Indonesian stocks were suspended from trading following yesterday's 10 percent drop. India was closed for a holiday.
China's benchmark stock index fell below 2,000 for the first time in three weeks, led by energy and steelmakers on concern a global economic slowdown will cut demand for their products. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, retreated 27.58, or 1.4 percent, to 1,995.30 at the close, after earlier rising as much as 2 percent.
Russia's Micex Index rallied as much as 17 percent and emerging market stocks rose the most in three weeks as coordinated central bank rate cuts spurred investors to start buying shares at the cheapest valuations in a decade.