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Overnight Markets: Oil rebound lifts Wall Street
Signals from China and Europe that officials will add to stimulus if needed also boosted equities.
Wall Street staged a modest rally on Thursday as oil surged towards $30 and ECB President Mario Draghi raised hopes of more stimulus for Europe.
The Dow Jones industrial average ended 0.74% stronger at 15,883 points and the S&P 500 gained 0.52% to 1,869. The Nasdaq Composite edged up 0.01% to 4,472.
Oil spiked 4.2% from a 12-year low after US crude stockpiles did not rise as much as feared, boosting energy shares. Chevron Corp. climbed 2.6%
Meanwhile, the European Central Bank kept its main rates on hold and Draghi said the central bank would "review and possibly reconsider" its monetary policy as soon as March. Many analysts had not expected a rate cut before June.
China’s Vice President Li Yuanchao also said the government would intervene to tamp down market volatility.
Home Depot gave the biggest boost to the Dow, rising 3.23% after JP Morgan said warm weather could help the home improvement company.
Kinder Morgan surged 15.6% as the pipeline company outlined plans to cut debt and spending, raising the chances of a higher dividend.
Union Pacific fell 3.55% after the railroad operator said weak business conditions would persist in 2016, a warning that also weighed on its peers.
Verizon Communications Inc. gained 3.5% after its profit beat estimates.
In Asia, shares rallied on Friday after a volatile week, as investors put their hopes in more stimulus from the European Central Bank.
The Shanghai Composite Index gained 1%, while Hong Kong’s Hang Seng Index was up 2.4%. Japan’s Nikkei Stock Average surged 3.4%, Australia’s S&P/ASX 200 was up 1.1% and South Korea’s Kospi gained 1.6%.
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