U.S. Stocks Rebound on Jobless Claims; Treasuries Fall

U.S. stocks surged, reversing most of yesterday’s plunge, and Treasuries sank as an unexpected drop in jobless claims and higher-than-estimated earnings tempered concern the economy is slowing as Europe’s debt crisis widens. The Swiss franc slid on plans to temporarily peg it to the euro.

The Standard & Poor’s 500 Index jumped 4.6 percent to 1,172.64 at 4 p.m. in New York. The Stoxx Europe 600 Index rallied 3.2 percent, rebounding from a two-year low. Treasuries extended losses as demand weakened at an auction of 30-year bonds, sending the benchmark 10-year note yield up 22 basis points to 2.32 percent. The franc slid at least 4.8 percent against all 16 major peers. Gold retreated from a record above $1,800 an ounce, while zinc and lead rallied.