U.S. stocks surged the most in two years and Treasuries sank as an unexpected drop in jobless claims and higher-than-estimated earnings tempered concern the economy is slowing amid Europe’s widening debt crisis. The Swiss franc slid on plans to temporarily peg the currency to the euro. The Standard & Poor’s 500 Index jumped 5.1 percent to 1,178.3 at 3:21 p.m. in New York, marking its biggest gain since March 2009 and erasing yesterday’s 4.4 percent slide. The Stoxx Europe 600 Index rallied 3.2 percent, rebounding from a two-year low. Treasuries extended losses as demand weakened at an auction of 30-year bonds, sending the 10-year note yield up 20 basis points to 2.35 percent. The franc slid at least 4.9 percent against all 16 major peers. Gold retreated from a record above $1,800 an ounce, while zinc and lead rallied.
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