Meanwhile, a manufacturing report for the 16 countries that use the euro was revised higher for July and showed that the Continent’s economy continues to recover faster than expected. The stock market’s spring plunge was triggered by concerns that rising government debt in Europe would stagnate the region’s economy and in turn affect other countries, including the United States.
Stocks also rose on strong earnings reports from banking giants HSBC and BNP Paribas, which reassured investors that the Continent’s financial sector is not being hurt by the debt problems.
HSBC shares trading in the United States rose $2.64, or 5.2 percent, to $53.72.
Among U.S. stocks, 3M rose $1.90, or 2.2 percent, to $87.44, while GE rose 28 cents to $16.40.
Oil prices jumped on signs of manufacturing growth. That, in turn, drove stocks of energy companies higher. ExxonMobil Corp. rose $1.96, or 3.3 percent, to $61.64, while Chevron Corp. jumped $1.66, or 2.2 percent, to $77.87. Benchmark crude rose $2.46, or 3.1 percent, to $81.41 a barrel on the New York Mercantile Exchange.