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US stocks extend recovery after Chinese market surges

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    Trader Tommy Kalikas, left, works on the floor of the New York Stock Exchange Thursday, Aug. 27, 2015. U.S. stocks are opening higher after China's main …

U.S. stocks moved sharply higher Thursday afternoon as investors took advantage of this week's big sell-off to add to their holdings. The stock market is rebounding from a sharp six-day slump that was triggered by concerns about the health of the Chinese economy.

Investors were encouraged by a surge in the Chinese stock market as the nation's main index logged its biggest gain in eight weeks. In the U.S., a report showed that the economy expanded at a much faster pace than previously estimated in the second quarter.

Energy stocks were among the biggest gainers as oil surged 9 percent, trading back above $40 a barrel.

The Dow Jones industrial average climbed 376 points, or 2.3 percent, to 16,661 as of 1:17 p.m. Eastern time. The Standard & Poor's 500 index gained 48 points, or 2.5 percent, to 1,989. The Nasdaq composite rose 120 points, or 2.6 percent, to 4,817.

U.S. stocks are rallying for a second day after logging their best performance in almost four years Wednesday, as the market bounced back from its six-day slump. The Dow has climbed almost 1,000 points in the last two days, pushing it into...