Stocks jumped on Tuesday, extending strong gains after U.S. Rep. Barney Frank said he expects the SEC's uptick rule to be restored in about a month.
The uptick rule, which only allowed a stock to be sold short when the last sale price was higher than the previous price, was repealed by the SEC in 2007 because the agency found that changes in trading strategies made it ineffective.
Frank added that mark-to-market accounting rule must be improved and made more flexible. A congressional panel is set.
The Dow Jones industrial average .DJI jumped 326.72 points, or 4.99 percent, to 6,873.77. The Standard & Poor's 500 Index .SPX rallied 38.42 points, or 5.68 percent, to 714.95. The Nasdaq Composite Index .IXIC shot up 77.19 points, or 6.08 percent, to 1,345.83.
(Reporting by Leah Schnurr; Editing by Jan Paschal)