US stocks rebound on renewed Europe hopes

NEW YORK—US stocks rallied Tuesday after a British newspaper reported that France and Germany were ready to sharply boost the eurozone’s rescue fund in a bid to address the public debt crisis.

The Dow Jones Industrial Average surged 175.66 points (1.54 percent) to 11,572.66 in closing trade.

The tech-heavy Nasdaq Composite rose 41.54 points (1.59 percent) to 2,656.46, while the S&P 500, a broader measure of the markets, advanced 24.03 points (2.00 percent) to 1,224.89.

The Guardian reported that the leaders of France and Germany, the eurozone’s biggest economies, have agreed to boost the rescue fund to two trillion euros ($2.7 trillion).