Stocks extended their dramatic rebound, thanks to a surprising recovery in consumer confidence that investors viewed as a harbinger of a healthier US economy.

After three straight sessions of triple-digit gains, the Dow has climbed nearly 560 points, or 5.9 per cent.

"I think the rally's real and we're in the early innings of a rebuilding process that is going to have some wind at its back," said Mr David Rolfe, chief investment officer at Wedgewood Partners Inc. which manages $200 million in St. Louis.

The consumer confidence level could offer relief for Fed Chairman Alan Greenspan, who in January expressed worry that consumers who fuel two-thirds of national economic activity might lose faith in the expansion.