The world's largest chipmaker suffered a $398-million loss, primarily because of a $1.45-billion fine levied by the European Union.

American Express, meanwhile, predicted a smaller loss than forecast over the coming year. Fewer people were likely default on credit-card debts than previously expected, despite the ongoing recession.

The blue-chip Dow Jones Industrial Average jumped 256.72 points, or 3.07 percent, to 8,616.21. The broader Standard & Poor's 500 Index surged 26.84 points, or 2.96 percent, to 932.68. The technology-heavy Nasdaq Composite Index gained 63.17 points, or 3.51 percent, to 1,862.9.

The US currency dropped against the euro to 70.89 euro cents from 71.6 euro cents

Tuesday. The dollar rose against the Japanese currency to 94.32 yen from 93.53 yen.