NEW YORK -- Stocks staged one of their strongest rallies of the year Tuesday, erasing a big decline from the day before, after a Federal Reserve official said he supported more measures to stimulate the economy.
Charles Evans, president of the Fed's Chicago bank, told Bloomberg News that he supported action to produce faster job growth, including having the Fed commit to super-low interest rates until unemployment falls significantly.
The big rally in U.S. stocks occurred despite more discouraging signs from Europe. The Dow rose 162.57 to close at 12,573.80. The Standard & Poor's 500 index gained 15.25 to 1,324.18, and the Nasdaq composite rose 33.34 to 2,843.07. Trading was light for a second day.