US stocks sharply higher on EU deal, US growth

NEW YORK: US stocks closed sharply higher Thursday after the EU reached a deal to resolve the eurozone crisis and new US growth data damped worries of a new recession.

The Dow Jones Industrial Average jumped 339.51 points (2.86 percent) to close at 12,208.55, while the broader S&P 500 gained 42.59 (3.43 percent) to 1,284.59, and the Nasdaq Composite rose 87.96 points (3.32 percent) to 2,738.63.

The S&P and Nasdaq were up more that four percent in afternoon trade before profit-taking set in; the surge followed four to six percent gains on most European bourses after EU leaders agreed to a comprehensive plan to shore up the eurozone.

"The plan is still lacking a few crucial details, but -- after months of limbo -- the bulls seem more or less elated by today's news. Banking stocks are leading the rally, as investors' worst fears about European debt exposure seem to have been alleviated," said Elizabeth Harrow of Schaeffer's Investment Research ahead of the close.

All 30 Dow blue chips were higher, with Bank of America jumping 9.6 percent, JPMorgan Chase jumped 8.3 percent and aluminium giant Alcoa climbing 9.5 percent.

Copyright AFP (Agence France-Presse), 2011