Correction Only Lasts One Week: Stocks recover from recent slide over debt fears

NEW YORK (AP) -- A dose of good economic news sent stocks sharply higher Wednesday and erased the Dow Jones industrials' big plunge of last week.

The Dow rose 148 points to return to where it stood before Thursday's tumble that briefly took the average down nearly 1,000 points. The technology-dominated Nasdaq composite index led major indexes with a 2 percent gain. Investors moved into tech stocks ahead of earnings from network gear maker Cisco Systems Inc. and following upbeat forecasts from Intel Corp. and IBM Corp.

Analysts say the market's rebound from last week's drop reflects investors' growing confidence that Europe's debt problems are contained for now. Fears that Europe's problems would spill over to the U.S. fed the market's plunge.

Economic reports from the U.S. and Europe helped reassure investors that the global recovery is intact. The Commerce Department said exports rose in March to their highest levels since 2008. That was a welcome signal for the manufacturing industry, which has been strengthening since last year. Increased demand could eventually lead to more hiring.

Most European markets posted big gains after better economic numbers signaled that a rebound is occurring in many parts of the continent. A round of spending cuts in Spain bolstered hopes that debt-strapped countries in Europe would take steps to slash costs. Stocks surged around the world Monday after European leaders agreed to a nearly $1 trillion bailout to contain fears of a debt crisis that pounded markets last week.

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