US stocks rebounded strongly on Tuesday, with the Dow jumping nearly four per cent after plummeting on the shock of Standard & Poor's downgrade of the US credit rating.
The Dow Jones Industrial Average of 30 blue-chip stocks added 429.92 points, or 3.98 per cent, to 11,239.77.
The broader S&P 500 climbed 53.07 points (4.74 per cent), at 1,172.53, while the tech-heavy Nasdaq jumped 124.83 points (5.29 per cent) at 2,482.52.
The rebound came after the markets had their worst day Monday since the 2008 financial collapse: the Dow lost 5.6 per cent, the S&P 500 6.7 per cent, and the Nasdaq 6.9 per cent.
The surge came in the last hour, with the Dow 150 points in negative territory 45 minutes before the close.
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It followed an announcement by the Federal Reserve that it expected to maintain interest rates at ultra-low levels for the next two years due to economic weakness.
