Stocks snapped a five-day losing skid as hopes for a new stimulus package in China prompted traders to buy industrial and commodities stocks.

The Dow Jones Industrial Average climbed 149.82 points, or 2.2%, to end at 6875.84. Caterpillar, a major exporter to China, surged 13% and Alcoa climbed 13%. Chevron and Exxon Mobil climbed as crude-oil prices settled above $45 a barrel. The Standard & Poor's 500 Index rose 16.53, or 2.4%, to 712.86, as its energy and basic-materials sectors jumped.

Analyst...