U.S. stocks rebounded late on Wednesday, led by shares of financial, technology and natural resource companies.
A weaker U.S. dollar <.DXY> gave a boost to commodities, sending materials stocks higher. The greenback retreated 0.5 percent against a basket of major currencies.
Banking shares also helped the market to bounce back. Bank of America
The Dow Jones industrial average <.DJI> was up 43.60 points, or 0.42 percent, at 10,329.57. The Standard & Poor's 500 Index <.SPX> was up 3.35 points, or 0.31 percent, at 1,095.29. The Nasdaq Composite Index <.IXIC> was up 10.21 points, or 0.47 percent, at 2,183.20.
Earlier, U.S. Treasury Secretary Timothy Geithner said the government would extend its $700 billion financial bailout fund to October 2010, saying it was still needed for significant challenges in the economy.
The extension will allow the Obama administration to tap the financial rescue program for further efforts to fight home foreclosures and to ease credit for small businesses in the hopes of spurring job growth.
The KBW bank index <.BKX> gained 0.3 percent, while the S&P financial index <.GSPF> rose 0.5 percent.
Extending the fund will really help smaller names in the financial sectors, not the big ones like Bank of America or Wells Fargo, said Burt White, managing director and chief investment officer at LPL Financial in Boston.
(Editing by Kenneth Barry)