US Stocks Rebound; DJIA’s Surge Erases Monday’s Decline

–Stocks rally; DJIA gains 163 to wipe away Monday’s sharp declines

–ECB reiterates call for creation of unified banking union

–Federal Reserve bank president’s statements renew stimulus hopes

NEW YORK–Stocks staged a rebound rally as investors cheered the potential for more stimulus from the Federal Reserve and as Europe’s central bankers repeated their call for unified efforts to combat the region’s financial issues.

The Dow Jones Industrial Average surged 162.57 points, or 1.3%, to 12573.80 on Tuesday, erasing Monday’s 143-point slide.

The Standard Poor’s 500-stock index jumped 15.25 points, or 1.2%, to 1324.18. Materials led the way as all …

• How the Dow Jones industrial average fared Monday
• Stock futures track lower after Bernanke speech
• Toronto stock market flat, traders await Federal Reserve moves on stimulus
• Asian stocks fall as growth pessimism mounts
• Wall Street slips at open with Bernanke in focus