Stocks rebounded strongly in New York today as bargain-hunters returned to a turbulent market following the biggest losing streak since late March.

The Dow Jones Industrial Average shot up 171.07 points, a rise of 1.6 per cent, to close at 10,702.16. At one point late in the session, the index was up 190.

Going into today's session, the Dow had fallen for four straight sessions, including a combined 298-point drop in the past two days. "The market was over-sold," said Tony Dwyer, chief equity strategist at Ladenburg Thalmann and Co. "It's ready for a bounce."

Broader stock indicators were mostly higher. The Standard and Poor's 500 rose 20.36 to 1,304.76, and the technology-heavy Nasdaq composite index rose 46.28 to 2,427.18. The Russell 2000 index of smaller companies rose 0.96 to 435.41.