By Angela Moon
The S&P 500 rose more than 2 percent, breaking out of a trading range of around 1,230-1,250. The broad index has been struggling to push past the levels for weeks as uncertainties over Europe persisted.
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"We are rallying today because the active players, mostly hedge fund managers and tactical investors, have been very neutral to even short until now. The market is up a lot, but they are rushing into getting long because they are capitulating," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
"Investors will now focus on data for November, which is expected to get weak, and possibly worse in December. That could bring up a lot of questions and predictions on the Fed move."
The Dow Jones industrial average jumped 232.57 points, or 1.96 percent, at 12,101.61. The Standard & Poor's 500 Index rose 30.20 points, or 2.43 percent, at 1,272.20. The Nasdaq Composite Index shot up 64.07 points, or 2.42 percent, at 2,714.74.
Dow Chemical Co rose 5 percent at $28.22, even as it narrowly missed quarterly profit expectations.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)