New York: US stocks surged on Thursday in a broad rally, rebounding from a big slump that was driven by worries about the health of the Chinese economy.
The three major US indexes dropped six days in a row heading into today. That's the longest market slide in more than three years.
The Dow had fallen about 1,900 points over that period, while the slump wiped more than USD 2 trillion off the value of S&P 500 companies.
Thursday was the second day that stocks had staged a rally. A strong rebound had yesterday evaporated in the final minutes of trading and the Dow ended more than 200 points lower after having been up more than 400 earlier in the day.
The Dow Jones industrial average rose 454 points, or 2.9 per cent, to 16,123 as of 3:08 pm Eastern time. The Standard & Poor's 500 index gained 54 points, or 2.9 per cent, to 1,922. The Nasdaq composite added 95 points, or 2.2 per cent, to 4,601.
Markets have been volatile since China decided to weaken its currency earlier this month. Investors interpreted the move as an attempt to bolster a sagging economy. Traders are also jittery about the outlook for interest rates.
The Federal Reserve has signaled it could raise its key interest rate for the first time in nearly a decade later this year. The Fed isn't expected to deliver a policy update until it wraps up a meeting of policymakers in mid-September.
Investors were also following the latest corporate deal and earnings news. Technology stocks were among the biggest gainers.
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