U.S. stocks rebounded from the worst day in seven weeks, as better-than-forecast data on retail sales and unemployment boosted confidence in the economy to overshadow a renewed selloff in oil.

Benchmark indexes retreated from their highs of the day after U.S. crude dropped below $60 a barrel for the first time since 2009, erasing a rally in energy shares. Urban Outfitters Inc. led a rally among retailers in the Standard & Poors 500 Index.

The S&P 500 added 0.5 percent to 2,035.28 at 4 p.m. in New York after climbing 1.5 percent earlier. The Dow Jones Industrial Average rose 64.15 points, or 0.4 percent, to 17,597.30, trimming a prior gain of 1.3 percent.

The S&P 500 slid 1.6 percent yesterday as a collapse in oil prices rippled through the financial markets, sending all 10 industry groups in the benchmark equity gauge down at least 1 percent. The Chicago Board Options Exchange Volatility Index, the measure of options prices known as the VIX, slipped 1.8 percent to 18.89 after spiking 24 percent yesterday.

Source : Bloomberg