Stocks lifted by bargain hunters

Industrial and bank shares were among the top gainers as Wall Street bounced back from a correction that pushed the S&P 500 down over 10 percent. Citigroup Inc climbed 3.7 percent to $3.92, while Boeing Co added 3.3 percent to $64.87 after brokerages raised their ratings, citing their undervaluation.

Homebuilder stocks were lifted after a report showed sales of newly built U.S. single-family homes rose in April to their highest level in nearly two years as buyers rushed to benefit from a government tax credit.

Lennar Corp rose 2.5 percent to $17.58, while the Dow Jones homebuilder index <.DJUSHB> jumped 2.2 percent.

I think the market really overreacted, said Nick Kalivas, vice president of financial research and senior equity index analyst, at MF Global. You've basically seen a comeback from the lows and that has essentially created some positive momentum.

The Dow Jones industrial average <.DJI> was up 70.51 points, or 0.70 percent, at 10,114.26. The Standard & Poor's 500 Index <.SPX> was up 9.98 points, or 0.93 percent, at 1,084.01. The Nasdaq Composite Index <.IXIC> was up 30.19 points, or 1.37 percent, at 2,241.14.

Technology issues were also among the leaders, with Apple Inc up 2.5 percent to $251.23, and Google Inc adding 2 percent to $486.58.

The CBOE volatility index <.VIX>, a gauge of market turbulence, fell 13 percent, returning to levels seen before the Spanish government took over a local lender on May 22, spurring fears about the strength of Europe's financial system.

Geithner pressed leaders to work with Washington on a consistent approach to financial reform as the European Union said it might go it alone with a crisis levy on banks. The euro-zone debt crisis has shaken world markets and fueled fears about a double-dip recession.

Commodity prices also bounced back after steep declines. Oil futures rose 3.7 percent to top $71 a barrel after a report showed a drop in U.S. gasoline stockpiles.

That helped energy companies like Anadarko Petroleum Corp , which rose 2.7 percent to $54.25, and Schlumberger Ltd , which advanced nearly 2.4 percent to $59.85.

U.S. indexes have technically entered a correction, falling more that 10 percent from a recent peak on April 23. But Tuesday's late rally pushed the Dow industrials back above the psychologically important 10,000 level.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)