Weak data in housing and regional factory activity triggered the most recent round of bets that Bernanke will act, even though the Fed's choices appear limited. Bernanke speaks to a central bank conference on Friday within Jackson Hole, Wyoming.
"I don't think anybody wants to be too short or negative before Bernanke's speech, " said Jim Awad, managing director at Zephyr Management in Ny.
The Dow Jones industrial average was up 322. 11 points, or two. 97%, at 11, 176. 76. The Standard & Poor's 500 Index had been up 38. 53 points, or 3. 43%, at 1, 162. 35. The actual Nasdaq Composite Index was up 100. 68 points, or 4. 29%, from 2, 446. 06.
Technology and other growth stocks drove much of increases, with the Nasdaq rising more than 4%. The sharp rise echoed the wild swings the marketplace experienced two weeks ago after Standard & Poor's downgraded United States' long-term credit score.
Volume was a solid 9. 35 billion shares traded on the Ny Stock Exchange, the American Stock Exchange and Nasdaq. The daily average for this past year was about 8. 47 billion.
Even financials, which had been knocked reduce earlier by shares of Bank of America, ended positive, with the S&P Financial records Index up 3. 2%.
Bank of America Corp remained under pressure on fears of possible write-offs and also the need for capital. Its stock fell 1. 9% to $6. 30 but well from the day's lows.
More than 561 million shares traded in Bank of The united states, accounting for nearly 6% of overall composite volume for the exchanges.
The marketplace has been battered by concerns of another US recession and the deteriorating euro zone debt crisis.
"This is how the start of a rally within an oversold market usually looks like: an aggressive short-term gain like today, inch said Jack De Gan, chief investment officer at Harbor Advisory
Corp within Portsmouth, New Hampshire, suggesting the market may have hit the bottom.
The rally briefly stalled within the afternoon on news of a magnitude of 5. 9 earthquake, which struck in Virginia and forced some building evacuations across the US East Coast and
Canada, but no major damage or injuries had been reported.
Big percentage gainers on the S&P included technology shares Nvidia Corp as well as JDS Uniphase Corp, both rising about 10%.
Among financial stocks, American Express Co and JPMorgan Chase & Co were the very best gainers on the Dow. American Express shares rose 4. 1% to $46. forty two, while
JPMorgan shares advanced 4. 1% to $34. 78.
On the NYSE, advancers beat decliners with a ratio of about six to one, while on the Nasdaq, about five stocks rose for each one that fell.