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New York - US stocks surged higher early on Tuesday, rallying with European equity markets following deep losses the last two sessions due to Britain's surprise vote to leave the European Union.
About 10 minutes into trade, the Dow Jones Industrial Average was at 17 320.15, up 1.1%. The broad-based S&P 500 climbed 1.1% to 2 022.39, while the tech-rich Nasdaq Composite Index jumped 1.4% to 4 658.01.
The gains in Europe were even stronger, with markets in London, Paris and Frankfurt all up around 3% as British Prime Minister David Cameron met with his counterparts from other EU countries in Brussels.
Analysts said Tuesday's bounce was a response to two days of heavy selling that saw global markets lose some $3trn after Britons voted Thursday to exit the 28-nation EU.
"There were outsized reactions in all capital markets following the surprising Brexit vote," said Briefing.com analyst Patrick O'Hare.
"There is a budding belief at this juncture, then, that things got overdone on a short-term basis, so there is some bargain-hunting activity taking place in oversold markets and some profit-taking occurring in overbought markets."
