Stocks jumped in late afternoon trading on reports that France and Germany have agreed to boost a rescue fund as part of an effort to stem the European debt crisis.
Stocks rose broadly Tuesday after fears that the U.S. would slip into a recession pounded the market over the last four weeks. Indexes briefly slipped from their highest levels of the day after an earthquake was felt throughout the Northeast.
Scrambling to protect themselves against a U.S. default, investors are buying gold and foreign currencies, using derivatives to bet on a stock market collapse and taking out complicated insurance policies.