Traders started the day braced for any possible downgrade of France's top banks by Moody's Traders Service, but sentiment improved as various European officials succeeded within tamping down fears that political and financial leaders were losing control from the situation.
Italy has asked China to make "significant" buys of Italian debt, the Financial Times reported on it's website on Monday.
"It shows the Chinese are serious about addressing the stresses available, " said Robbert Van Batenburg, head of equity research at Louis Capital in Ny.
Wall Street's comeback suggested some easing of worry how the global economy was lurching toward another recession.
Nasdaq brought gains, with merger news helping to support tech gives. NetLogic Microsystems Inc ended up 50. 8% at $48. 12 after wireless chipmaker Broadcom Corp decided to buy the company for about $3. 7 billion. A good index of semiconductors jumped 3% while Broadcom shares dropped 1. 1% to $33. 06.
Besides technology, financials were one of the better performers on the S&P 500. The S&P financial catalog gained 1. 2%.
Fears Europe's credit crisis would drag on US banks happen to be pressuring financial stocks for months, sending shares of some to a minimum of two-year lows.
The Dow Jones industrial average finished upward 68. 99 points, or 0. 63%, at 11, 061. 12. The conventional & Poor's 500 Index was up 8. 04 factors, or 0. 70%, at 1, 162. 27. The Nasdaq Amalgamated Index ended 27. 10 points higher, or 1. 10%, from 2, 495. 09.
The Broadcom merger "is a sign that lots of stocks are undervalued from a historical perspective, " stated Joseph Cangemi, managing director at BNY ConvergEx Group in Ny.
The day's gains broke a two-day losing streak, however the S&P 500 is still down 13. 6% since This summer 22, roughly when the recent market downtrend began. High of the recent selling has been tied to worries within the euro zone debt crisis.
In another sign leaders possess stepped up action, euro zone officials said US Treasury Secretary Timothy Geithner will attend a gathering of euro zone finance ministers on Friday to show unity when confronted with market turmoil and risks to growth.
The late come back came after European shares finished at two-year lows. Investors feared the euro zone's rescue arrange for the sovereign debt crisis was in danger.
On Monday Italy was forced to pay for sharply higher interest to attract buyers for its financial debt.
Mounting fears of a Greek debt default also triggered investors to dump stocks. Because of the possible financial debt default by Greece, sources said they expected Moody's in order to downgrade French banks, which were seen as vulnerable.
A backdrop towards the market's early losses was a weekend meeting of the Number of Seven industrialised nations, which failed to come up with fresh proposals to enhance global growth.
Barclays Capital, citing "higher levels of financial uncertainty, " cut its full-year target for the S&P 500 stock index by about 9% to at least one, 325.
Volume was 8. 3 billion shares on the actual NYSE, Amex and Nasdaq, above last year's average associated with roughly 7. 6 billion.
Decliners still beat advancers about the NYSE by about 15 to 14, while advancers outpaced decliners upon Nasdaq by about 7 to 6.