(Reuters) - U.S. stocks rose more than 2 percent on Tuesday, bouncing after steep losses last week and a China-fueled rebound in global equities.
Gains were broad-based and followed a three-day U.S. holiday weekend. All but one of the 10 major S&P sectors - energy - ended with gains of more than 2 percent.Hopes for more stimulus measures from the Chinese government increased after data on Tuesday showed that China's imports shrank far more than expected in August, falling for the 10th straight month.Chinese stocks surged in a late rally, sparking a rebound in global equities. Late on Monday, China said it would remove a tax on dividend incomes for investors who hold stocks for more than a year in an effort to encourage longer-term investment."We had some nice buying opportunities with the sell-off in August, and I think people are starting to take advantage of that and put money to work," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston. "In China it seems like there is a willingness to continue with stimulus, so hopefully those markets will stabilize."The Dow Jones industrial average <.dji> rose 390.3 points, or 2.42 percent, to 16,492.68, the S&P 500 <.spx> gained 48.19 points, or 2.51 percent, to 1,969.41 and the Nasdaq Composite <.ixic> added 128.01 points, or 2.73 percent, to 4,811.93.All three major U.S. stock indexes posted losses of at least 3 percent for last week.Global financial markets have been rattled in recent weeks by fears that China's slowdown could drag on already sluggish global growth, prompting some investors to bet that the U.S. central bank will delay a hike until the end of the year.A mixed report on the U.S. jobs market for August on Friday added to investor uncertainty over whether the Federal Reserve will increase interest rates at its Sept. 16-17 meeting.Apple