U.S. stocks rallied, with the Standard & Poor’s 500 Index clawing back some of its losses from a global rout that sent the benchmark into a correction amid the steepest two-day drop since the financial crisis.
Technology shares led the rebound as Apple Inc. jumped the most since January. JPMorgan Chase & Co. and Bank of America Corp. advanced at least 3.8 percent to lead banks back from their worst two-day slide in four years. Best Buy Inc. soared 15 percent after its quarterly profit topped analysts’ estimates, and Netflix Inc. added 9.3 percent to reverse Monday’s decline. Facebook Inc. surged 5.8 percent, the most in a year, after sliding 14 percent in the prior three sessions.
The S&P 500 rose 2.4 percent to 1,937.72 at 12:30 p.m. in New York, on track for its biggest gain this year, after closing Monday in a correction for the first time in four years. The Dow Jones Industrial Average added 358.77 points, or 2.3 percent, to 16,230.12. The Nasdaq Composite Index climbed 3.3 percent, headed for its best advance since 2011.
Index futures contracts briefly extended gains earlier after China cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside in an attempt to stem the country’s biggest stock market rout since 1996 and a deepening economic slowdown.