Nasdaq 100 Leaders & Laggards: APOL XRAY

The Fed will auction the funds to banks and other institutions to help ease the credit crisis.

Apollo rose $5.12, or 9.3 percent, to $60.11. In a client note, BMO Capital Markets analyst Jeffrey M. Silber said "extreme fears of the entire student loan market drying up are unfounded."

"Washington will likely act in some form, especially if students at not-for-profit schools begin facing financing difficulties," Silber wrote in a client note.

Joy Global Inc. rose $5.52, or 8.7 percent, to $69.35.

Steel Dynamics Inc. rose $4.91, or 8.5 percent, to $62.75. In a client note, Lehman Brothers analyst Dana Guido said higher steel prices will more than offset higher raw-material costs for most steel producers.

The index rose 67.92 points, or 4.1 percent, to 1,320.65, while the broader Nasdaq composite gained 86.42 points, or 4 percent, to 2,255.76.

On the losing side, dental products maker Dentsply International Inc. declined 26 cents to $37.32.

Lamar Advertising Co. decreased 18 cents to $34.42. Shares hit a 52-week low of $33.66 earlier in the session.

And contract electronics manufacturer Flextronics International Ltd. declined 4 cents to $9.74.