U.S. stocks surge as market attempts to bounce

U.S. stocks traded sharply higher Tuesday, as Wall Street tried to rebound after a long weekend.

At midday, the Dow Jones Industrial Average gained 253.01 points, or 1.57 percent, to 16,355.39. The S&P 500 soared 28.76 points, or 1.50 percent, to 1,949.98. The Nasdaq Composite Index spiked 85.87 points, or 1.83 percent, to 4,769.79.

U.S. traders were cheered by gains in China's stocks market Tuesday. Chinese shares rebounded after encouraging news about introduction of an index circuit breaker system and a dividend tax break.

The benchmark Shanghai Composite Index ended at 3,170.45 points, up 2.92 percent.

U.S. markets were closed Monday for the Labor Day holiday.

Investors remained focused on the Federal Reserve ahead of its key policy meeting next week, when the U.S. central bank could raise interest rates for the first time in more than nine years.

U.S. stocks suffered big losses Friday as investors tried to digest the closely-watched jobs data amid global sell-off.

U.S. economic data came out mixed Friday, and many analysts said such report gives policymakers enough support for the move of rate hike.

The Labor Department reported Friday that total nonfarm payroll employment added 173,000 in August, well below market consensus of 223,000.

The unemployment rate, however, inched down to 5.1 percent, beating market estimates of 5.2 percent and logging the lowest level in seven years. Endit