The Standard & Poor's 500 Index rose 16.61, or 1.7 percent, to 1,019.96 at 10:20 a.m. in New York. The Dow Jones Industrial Average climbed 147.99, or 1.6 percent, to 9,535.6 after a 936- point rally yesterday. The Nasdaq Composite decreased 7.76, or 0.4 percent, to 1,836.49. Three stocks rose for every two that fell on the New York Stock Exchange.
Canadian stocks surged, sending the main index to the biggest gain in 33 years, after the U.S. announced plans to invest $250 billion in banks in an effort to avert a global recession. The Standard & Poor's/TSX Composite Index jumped 13 percent to 10,211.46 at 9:57 a.m. in Toronto, the biggest intraday rise since January 1975.
National benchmarks advanced in all of the 18 western European markets except Iceland.
The U.K.'s FTSE 100 Index staged its biggest two-day rally since at least 1984 after the U.S. injected $250 billion into banks and urged lenders to use the funds to spur economic growth. The FTSE 100 gained 197.5., or 4.7 percent, to 4,454.65 at 2.37 p.m. in London as all but 12 stocks rose.
German stocks rallied, on course for the steepest two-day gain on record, as the U.S. injected $250 billion in its financial system and the cost of borrowing between banks declined. The DAX Index added 285.19, or 5.6 percent, to 5,347.64 as of 2:57 p.m. in Frankfurt, extending yesterday's 11 percent jump.
Japanese stocks rallied, driving the Nikkei 225 Stock Average to its biggest gain on record, as U.S. and European government plans to buy bank stakes boosted confidence that global financial markets will avoid collapse. The Nikkei climbed 14.2 percent, rebounding from the worst week in its 59-year history.
Australian stocks gained for a second day, led by banks, energy and resources companies, on speculation U.S. measures to rescue the financial system will help revive the global economy. Australia's benchmark S&P/ASX 200 Index jumped 3.7 percent to 4,335.20 at the close in Sydney today, extending yesterday's 5.6 percent advance.
Indian stocks rose, with the benchmark index climbing to its highest in a week, after U.S. and European governments agreed to buy stakes in their banks to re- energize credit markets and avert recession. The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 174.31, or 1.5 percent, to 11,483.40, extending yesterday's 7.4 percent advance.
China's stocks fell, with the benchmark index reversing gains in the last half hour of trading, led by steelmakers and brokerages on signs of slowing earnings. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, retreated 2.6 percent to 1,934.62 at the close, erasing an earlier gain of as much as 3.8 percent.
Russian stocks surged, led by banks OAO Sberbank and VTB Group, as U.S. and European governments agreed to buy stakes in banks to avert a collapse in financial markets and bolster economic growth. The ruble-denominated Micex Index jumped 11 percent to 741.14, trimming its loss this year to 61 percent.