* Financial and tech stocks rebound
* Oil, bond yields rebound; gold falls
* Indexes up: Dow 0.8 pct, S&P 0.99 pct, Nasdaq 1.4 pct (Updates to early afternoon)
By Yashaswini Swamynathan
June 28 (Reuters) - Wall Street was higher on Tuesday as investors rushed to buy cheap after Britain’s decision to leave the European Union wiped off $3 trillion from global markets over the last two trading days.
Banks, which were the worst hit since the referendum on Thursday, were among the most attractive stocks for bargain hunters. The S&P financial index rose 1.31 percent.
Morgan Stanley, Bank of America, Citigroup and JPMorgan were all up more than 2.5 percent while Goldman Sachs rose 1 percent.
Global equities commenced a downward spiral on Friday as investors scrambled to safe havens such as the yen and gold after the referendum threw questions over the future of the European Union.
A rebound in oil prices on Tuesday signaled an appetite for riskier assets, while gold retreated.
The yield on 10-year U.S. Treasury bonds turned positive after two days.
However, uncertainty over when and on what terms Britain will end its membership is expected to fuel volatility in the next few weeks.
“There’s some logic to the rally, but I don’t think there is any staying power,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.
At 12:28 p.m. ET (1628 GMT), the Dow Jones Industrial Average was up 136.32 points, or 0.8 percent, at 17,276.56.
The S&P 500 was up 19.78 points, or 0.99 percent, at 2,020.32.
The Nasdaq Composite was up 64.49 points, or 1.4 percent, at 4,658.93.
Nine of the 10 major S&P sectors were higher, led by a 1.75 percent gain in the energy index.
Materials were slightly down, weighed by Dupont and Dow Chemical.
“This is a very volatile and churning environment,” said Eric Wiegand, senior portfolio manager at U.S. Bank in New York. “It’s not going to be the blank summer months that we had grown accustomed to.”
Investors do not expect the U.S. Federal Reserve to raise short-term interest rates anytime this year, but they will keep an eye on economic data that can steer the Fed’s sentiment.
Gross domestic product increased at a 1.1 percent annual rate, compared with 0.8 percent last month. The consumer confidence index rose 98.0 in May, compared to analysts’ estimate of 93.3.
Advancing issues outnumbered decliners on the NYSE by 2,556 to 444. On the Nasdaq, 2,273 issues rose and 515.
The S&P 500 index showed 13 new 52-week highs and no new lows, while the Nasdaq recorded 22 new highs and 33 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Don Sebastian)