GE jumped 14 percent and contributed the most to the gain in the Standard & Poor’s 500 Index. Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. advanced at least 9 percent to lead a recovery in S&P 500 financial shares a day after the group’s biggest drop on record. All 24 industry groups in the S&P 500 rose as the index climbed 3.5 percent in the last 90 minutes of trading.
The S&P 500 added 32.6 points, or 4 percent, to 848.81. The Dow Jones Industrial Average gained 270 points, or 3.3 percent, to 8,419.09, with 28 of its 30 companies rising. The Nasdaq Composite Index climbed 3.7 percent to 1,449.8. Seven stocks increased for each that fell on the New York Stock Exchange.
European shares rose, with the Dow Jones Stoxx 600 Index rebounding from its biggest drop in six weeks, as speculation central banks will step up efforts to boost growth outweighed concern the recession will curb profit.
The Dow Jones Stoxx 600 Index added 2.63, or 1.4 percent, to 196.54 at 3:24 p.m. in London, after a 6 percent drop yesterday as declines in manufacturing in the U.S., Europe and China signaled the global economy is worsening. More than $31 trillion has been wiped off the value of global equities as countries from the U.K. and Germany to the U.S. slip into recession.
National benchmarks increased in 13 of the 18 western European markets. The FTSE 100 added 0.2 percent. Germany’s DAX gained 1.3 percent, and France’s CAC 40 rose 0.5 percent.