There was also some deal news for investors to focus on. Trading was closed in the U.S. on Monday in observance of the Labor Day holiday.
KEEPING SCORE: The Standard & Poor's 500 index rose 30 points, or 1.6 percent, to 1,952 as of 10:03 a.m. Eastern. The Dow Jones industrial average climbed 279 points, or 1.7 percent, to 16,381. The Nasdaq composite gained 88 points, or 1.91 percent, to 4,771.
CHINA TRADE: China's stock market rebounded despite some disappointing news on its economy. China's exports shrank 5.5 percent last month compared with a year earlier, while imports tumbled 13.8 percent. August's figures were hit by disruption from a massive explosion at the busy Tianjin port and government-enforced factory shutdowns in the run-up to a huge military parade in Beijing last week. China's trade has been weak for months, reflecting muted global demand and a domestic slowdown.
POWER DEALS: Teco energy surged after Canadian energy and services company Emera said that it would buy the electric and gas utility company for about $6.5 billion. Teco's stock jumped $5.02, or 24 percent, to $26.10. Meredith jumped $4.45, or 9.6 percent, to $50.37 after agreeing to be acquired by fellow media company Media General.
EUROPE'S DAY: Germany's DAX advanced 2.4 percent, Britain's FTSE 100 climbed 1.4 percent and the CAC 40 in France gained 1.8 percent.
ASIA'S DAY: Japan's Nikkei 225 stock index sank 2.4 percent. China's Shanghai Composite Index jumped 2.9 percent in a rebound from losses earlier in the day. Recent gains in Chinese stocks have been attributed to buying by government agencies aiming to halt a dramatic sell-off that began in June. Hong Kong's Hang Seng index rose 3.3 percent.
ENERGY: Benchmark U.S. crude fell $1.40 to $44.69 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, gained rose 42 cents $48.02 a barrel in London.
BONDS AND CURRENCIES: Government bond prices fell, pushing the yield on the 10-year benchmark Treasury note up to 2.18 percent from 2.13 percent on Friday. The euro rose to $1.1186 from $1.1168. The dollar rose to 119.93 from 119.39 yen.