US STOCKS SNAPSHOT-Wall St jumps on accounting rule, G20

NEW YORK, April 2 (Reuters) - U.S. stocks surged more than 4 percent on Thursday as world leaders agreed to a trillion-dollar deal to fight the economic downturn and banks were allowed more flexibility to value toxic assets that have clogged up the financial system.

* Underpinning the rally was optimism that the economic downturn was showing signs of moderating as data showed U.S. factory orders rose in February, breaking a six-month streak of declines. Industrial shares climbed, while Caterpillar (CAT.N), up nearly 10 percent, was among those giving the biggest boosts to the Dow.

* The Dow Jones industrial average .DJI gained 305.69 points, or 3.94 percent, to 8,067.29. The Standard & Poor's 500 Index .SPX rose 33.23 points, or 4.10 percent, to 844.31. The Nasdaq Composite Index .IXIC jumped 69.90 points, or 4.51 percent, to 1,621.50. (Reporting by Leah Schnurr; Editing by Jan Paschal)