Buyers returned to equity markets with a vengeance on Wednesday to snap up bargains from recently beaten up stocks. The S&P/TSX composite index gained 221.05 points to close at 6,382.13.

All 10 of the TSX’s subgroups closed higher, led by an impressive 6.8% gain in energy stocks and a solid 4% rise among financial issues.

Canadian oil and gas stocks were the biggest winners in the turnaround after being dragged down over the past week in the broad equities selloff.

Encana closed up $4.45 to $42.50 a share, while the shares of Canadian Natural Resources were up $3.55 to $48.60.

BCE gained 85¢ to close at $24.85. Before markets opened, the communications conglomerate reported an $11 million quarterly profit and an $8.18 billion writedown, most of it against bankrupt Teleglobe.

Molson’s A shares picked up $1.65, finishing at $28.75. The company posted higher first quarter earnings on brewing acquisitions in Brazil.

In economic news, Bank of Canada governor David Dodge said the central bank has raised its growth expectation for Canada for the year to between 3% and 4%. The bank expects similar growth next year.

The rising tide didn’t carry the junior TSX Venture Exchange, which dropped 25.08 to 1,022.07.

In New York, buyers re-emerged in droves Wednesday and the Dow Jones industrial average had its best day since late 1987.

The Dow finished with a gain of 488.95 points, or 6.4%, to 8,191.29, while the Nasdaq jumped 61.18 points, or 5%, to 1,290.23. For both averages it was the largest percentage gain in 15 years and the Dow’s second-biggest single-day point gain ever. The S&P 500 rose 46 points, or 5.7%, to 843.

The arrest of the former head of bankrupt cable firm Adelphia on securities fraud charges, and soothing words from U.S. bank J.P. Morgan Chase gave a boost to investor confidence.

The Canadian dollar, which lost almost US2¢ over the past two days, gained strength following the news of an improved economy outlook from the Bank of Canada. The loonie gained 0.82¢ to close at US63.92¢.