Stocks jump; Dow notches best gain in 2 weeks

The Dow sank 60 points immediately following the earthquake that shook much of the East Coast, but it quickly bounced back, ending the day up 322 points. The Nasdaq closed 101 points higher, and the S&P 500 closed up 39 points.

Richard Drew / AP
Trader William Sachs, right, talks with a fellow trader on the floor of the New York Stock Exchange last week. Stocks rose around the world on Tuesday, Aug. 23, as investors shrugged off signs of deteriorating economic sentiment in Europe and hoped the Federal Reserve would act to keep the US from sliding back into recession.

The Dow Jones industrial average is closing with its biggest gain in nearly two weeks.

Investors were picking up beaten-down stocks Tuesday after fears that the U.S. would slip into a recession pounded the market over the last month.

The Dow rose 322 points, or 3 percent, to close at 11,177. That's its best day since it jumped 423 points Aug. 11. It dipped about 60 points shortly after the quake hit the East Coast in the early afternoon, but recovered within minutes.

The S&P 500 index rose 39 points, or 3.4 percent, to 1,162. The Nasdaq rose 101 points, or 4.3 percent, to 2,446.

Five stocks rose for every one that fell on the New York Stock Exchange. Trading volume was higher than average at 5.2 billion shares.

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