U.S. stocks finished higher on Tuesday, with all three major indexes rising over 1 percent, after a report that European Union (EU) finance ministers are discussing ways to recapitalize the continents' banks.
The rise came after the Financial Times reported EU finance ministers, meeting in Luxembourg, concluded that they had not done enough to convince financial markets that Europe’s banks could withstand the debt crisis.
In world markets, European stocks finished lower, with the declines led by the DAX in Germany falling 3 percent. Asian markets also ended lower, with the declines led by the Hang Seng in Hong Kong falling 3.4 percent.
The U.S. dollar rose versus the euro but fell versus the yen. Light sweet crude oil for November delivery fell 34 cents to $77.25 a barrel on the New York Mercantile Exchange. Gold futures fell $30.60 to $1,619.1 an ounce.
The Dow Jones industrial average rose 153.41, or 1.4 percent, to 10,808.71. The broader Standard & Poor’s 500 index rose 24.72, or 2.3 percent, to 1,123.95. The technology-heavy Nasdaq composite index rose 68.99, or 3.0 percent, to 2,404.82.