U.S. stocks advanced as transportation companies rallied on lower oil prices, while banking shares staged a comeback in the last half hour of trading on speculation Lehman Brothers Holdings Inc. will be bought.

The S&P 500 added 17.01 points, or 1.4 percent, to 1,249.05. The Dow Jones Industrial Average jumped 164.79 points, or 1.5 percent, to 11,433.71, erasing a 170-point drop. The Nasdaq Composite Index increased 29.52, or 1.3 percent, to 2,258.22.

(Bloomberg.com)