The Toronto Stock Exchange bounced back on Tuesday, sending its benchmark index up more than 200 points a day after it plunged almost 4%.

The S&P/TSX composite index rose 211.66 points, or 2.8%, to close at 7,859.33.

Financial stocks led the way, soaring 7.2% in Tuesday’s trading.

Shares of Royal Bank of Canada rose a sharp $2.66, or 10.3%, to close at $28.48.

Shares of Manulife Financial Corp. rallied 7.7% to $13.50 and Sun Life Financial Corp. gained 8.8% to $19.72.

Bank of Nova Scotia’s stock rose 8.4% to $26.24 and Toronto-Dominion Bank increased 7.5% to $35.25.

Energy stocks surged 5.5%, bolstered by gains in oil futures on speculation that the Organization of the Petroleum Exporting Countries could soon further cut production levels. Crude for April delivery ended up US$1.52, or 4%, at US$39.96 a barrel on the New York Mercantile Exchange.

Within the energy group, Suncor Energy Inc. advanced 6.8% to $22.76 and Canadian Natural Resources Ltd. rallied $3.20, or 8.8%, to $39.74.

Nexen Inc. shares surged $1.60, or 10.8%, to close at $16.46.

Also higher was Imperial Oil Ltd., up 5.8% to $38.04, and Petro-Canada, up 6% to $26.38.

The materials group was a drag on the TSX, shedding 5.2% as gold futures continued to fall. Gold for February delivery closed at US$969.10 an ounce, down US$25.50, or 2.6%, on the Comex division of the New York Mercantile Exchange.

The subgold index tumbled 9%.

Shares of Barrick Gold Corp. tumbled $5.43, or 12.2%, to $39.25 and Iamgold Corp. plummeted 12.3% to $9.65.

Goldcorp Inc. fell 8.9% to $35.03 and Kinross Gold Corp. shares dropped $2.02, or 8.8%, to $20.89.

Shares of Agnico-Eagle Mines Ltd. dropped $6.08, or 8.9%, to close at $62.60.

Gainers in the group included Potash Corp. of Saskatchewan, up 7.5% to $102.49, and Nova Chemicals Corp., up another 3.4% to $6.71.

Magna International saw its shares rise 6.7% to $34.31 after the auto parts giant reported a net loss of US$148 million in the fourth quarter of 2008, reversing a year-earlier profit of US$28 million.

Shares of Thomson Reuters Corp. surged 11.5% after the company reported fourth-quarter net income of US$656 million, up from US$432 million the previous year, and announced that it expects revenue growth in 2009. The company’s shares rose $3.24 to $31.49 on the TSX.

The S&P/TSX Venture composite index declined in Tuesday’s trading, to finish at 853.59, down 25.35 points, or 2.9%.

The Canadian dollar gained half a cent against its U.S. counterpart, to close at US80.43¢.

The main indices in New York also enjoyed a rebound on Tuesday after Federal Reserve Board chairman Ben Bernanke pledged to aggressively fight the “severe” recession gripping the U.S. economy.

The Dow Jones industrial average gained 236.16 points, or 3.3%, to close at 7,350.94.

The S&P 500 index added 29.81 points, or 4%, to finish at 773.14.

The Nasdaq composite index rose by 54.11 points, or 3.9%, to 1,441.83.