U.S. stocks rose for a second day as the government expanded its rescue of American International Group Inc. and China unveiled a $586 billion economic stimulus plan.
AIG jumped 28 percent after the government boosted the insurer's bailout to $150 billion following its fourth straight quarterly loss. Caterpillar Inc. climbed more than 5 percent and Freeport-McMoRan Copper & Gold Inc. added 11 percent as China's plan eased concern that construction spending will slow in the world's fastest-growing major economy. McDonald's Corp., the largest restaurant chain, added 4.3 percent as its dollar menu lifted October sales above analysts' estimates.
The Standard & Poor's 500 Index gained 1.9 percent to 948.54 at 9:35 a.m. in New York. The Dow Jones Industrial Average added 204.46, or 2.3 percent, to 9,148.27. The Nasdaq Composite Index rose 1.8 percent to 1,676.94. About 11 stocks advanced for each that fell on the New York Stock Exchange.
China's CSI 300 Index jumped 7.4 percent, and Japan's Nikkei 225 Stock Average surged 5.8 percent. BHP Billiton Ltd.ArcelorMittal and ABB Ltd. added more than 13 percent in Europe.
The MSCI World Index increased 1.6 percent to 954.42 at 12:13 p.m. in London, trimming this year's drop to 40 percent. The International Monetary Fund predicts global growth will slow to 2.2 percent in 2009 from 3.7 percent this year, meaning a world recession under the fund's informal definition -- growth of 3 percent or less.
Europe's Dow Jones Stoxx 600 Index advanced 2.4 percent, and futures on the Standard & Poor's 500 Index climbed 2.1 percent. The MSCI Asia Pacific Index added 3.3 percent.
Emerging-market stocks, bonds and currencies gained. The MSCI Emerging Markets Index added 3.4 percent, with Russia's Micex Index climbing 7.1 percent and India's Sensitive Index adding 5.7 percent