U.S. stocks staged the biggest rally of the year, rebounding from a rout that wiped out $1 trillion yesterday, and Treasuries fell amid speculation the Federal Reserve may signal plans to safeguard the economic recovery. Oil rose from a 10-month low.
The Standard & Poor’s 500 Index surged 2.5 percent to 1,146.97 at 10:32 a.m. in New York for its biggest gain since September. The gauge lost 6.7 percent yesterday, the most since December 2008. The drop in Treasuries, the benchmarks for the $34 trillion U.S. debt market that is more than twice the value of American equities, sent the 10-year yield up six basis points to 2.38 percent. The Stoxx Europe 600 Index climbed 0.9 percent after losing as much as 5.1 percent. Italian 10-year yields slid 12 basis points. The franc appreciated against its 16 major peers. Oil rallied 1.8 percent to $82.78 a barrel.