* S&P 500 ends up 1.8 pct
* Dollar rises, helped by data on private payrolls
* Oil erases early losses to settle higher
(Updates with U.S. market closing levels)
By Caroline Valetkevitch
NEW YORK, Sept 2 (Reuters) - Global stock indexes rose on
Wednesday, helped by reports of brokerage measures in China to
invigorate the country's battered markets, while oil bounced
from earlier losses to end nearly 2 percent higher.
The S&P 500 jumped 1.8 percent, rebounding from Tuesday's
steep losses. An upward revision in U.S. productivity data and a
Federal Reserve report saying U.S. labor markets were tight
enough to fuel small wage gains in some professions in recent
weeks boosted sentiment.
Rallying equities pulled crude oil up from lows in another
volatile session for the energy market.
Overseas, nine Chinese brokerages pledged to buy more than
30 billion yuan of shares, according to the China Securities
Journal. That eased investor fears that Beijing may be
intensifying a trading crackdown. ID:nL4N11803T
The news steadied global markets that have been rattled in
recent weeks by concerns about slowing growth in China, the
world's second biggest economy.
"What we're seeing today is not a recovery. It's market
volatility, it's nervousness, it's an inability to call the
direction of the market," said Jake Dollarhide, chief executive
officer of Longbow Asset Management in Tulsa, Oklahoma.
"Through now and October we're going to see a lot more of
this, a lot of volatility."
The CBOE Volatility index .VIX , Wall Street's "fear
gauge," dipped 11 percent but stayed in territory not seen since
2011 after Standard & Poor's cut its credit rating on the United
States for the first time.
The Dow Jones industrial average .DJI rose 293.03 points,
or 1.82 percent, to 16,351.38, the S&P 500 .SPX gained 35.01
points, or 1.83 percent, to 1,948.86 and the Nasdaq Composite
.IXIC added 113.87 points, or 2.46 percent, to 4,749.98.
The S&P 500 posted its worst monthly drop in three years in
August and is down 8.5 percent from its all-time high in May.
European equities .FTEU3 ended 0.2 percent higher, while
MSCI's all-country stock index .MIWD00000PUS rose 0.8
percent.
Brent October crude LCOc1 rose 1.9 percent to settle at
$50.50 a barrel, having recovered from a $47.74 low. U.S.
October crude CLc1 rose 1.9 percent to settle at $46.25, after
falling as low as $43.21 in the session.
On Tuesday, oil slid 8 percent, ending a 25 percent
three-session surge of frenzied short-covering.
The dollar rose as global stock markets steadied, and as
U.S. hiring data encouraged speculation that the Fed will raise
interest rates at its policy-setting meeting later this month.
The dollar index .DXY , a measure of six major currencies'
value against the greenback, was last up 0.40 percent and had
added to gains when ADP reported that U.S. private payrolls
increased 190,000 last month.
The government's more comprehensive non-farm payrolls report
is due on Friday, the last monthly report before the Fed meets
on Sept. 16-17.
In another report on Wednesday, U.S. data showed nonfarm
productivity increased at its strongest pace in 1-1/2 years in
the second quarter, keeping wage inflation subdued for now.
The combination of more demand for workers and worries about
Chinese economic growth underscores the challenge faced by the
Fed at its upcoming meeting, when it may decide to raise
interest rates for the first time since 2006.
Prices of safe-haven U.S. Treasuries slipped on the greater
risk appetite, with long-dated prices falling the most on
continued speculation of foreign central bank selling.
Benchmark 10-year Treasuries US10YT=RR were last down 5/32
in price to yield 2.19 percent from 2.17 percent late Tuesday.
U.S. 30-year Treasuries US30YT=RR were last off 18/32 to yield
2.96 percent from 2.93 percent late Tuesday.
In the precious metals market, gold eased as the rebound in
stocks and the dollar arrested a four-day rise. Spot gold XAU=
was down 0.5 percent at $1,134 an ounce.