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.
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.
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