U.S. Stocks Rise as European Shares, Italian Bonds Tumble

U.S. stocks rose, rebounding from the worst drop since November, as data on housing and consumer confidence bolstered optimism in the economy. European shares slid with Italy’s bonds as the nation’s election stalemate spurred concern the debt crisis will worsen.

The Standard & Poor’s 500 Index added 0.6 percent to 1,496.94 at 4 p.m. in New York after the U.S. gauge slid 1.8 percent yesterday. The Stoxx Europe 600 Index dropped 1.3 percent with volume 27 percent greater than the 30-day average. Italy’s FTSE MIB Index fell 4.9 percent, the most since April, and 10-year bond yields jumped 41 basis points to 4.9 percent. The euro was little changed at $1.3063 after plunging 1 percent yesterday. Ten-year Treasury yields increased two basis points to 1.885 percent after declining for four straight days.