Boosted by comments from European Central Bank’s President Mario Draghi, who on 21 January hinted at further economic stimulus, investors received more positive news after Japan’s Prime Minister Shinzo Abe said “conditions for additional easing have fallen into place”. The S&P 500 was 1.5% higher and the Nasdaq composite was up 1.8%.
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At midday, the Dow Jones Industrial Average rose 133.31 points, or 0.84 percent, to 16,015.99.
In afternoon trading the Dow was up 175 points, or 1.1% and the Standard & Poor’s 500 gained 0.7%.
After yesterday’s wild ride and sizable stock market reversal that limited losses, Wall Street staged a rebound Thursday with the Dow rising as high as 275 points after oil prices jumped 5% and European stocks rallied on ECB stimulus talk.
For this reason, he said the monetary authority would reconsider its monetary policy at its early March meeting when macroeconomic projections became available. Futures on Australia’s S&P/ASX 200 Index added 0.8 percent in most recent trading, after the S&P 500’s Wednesday slump was reduced to 1.2 percent from as much as 3.7 percent.
Indeed, energy companies dominated the gains, with shares of pipeline company Williams Cos. up more than 23 percent.
“If Draghi is actually going to talk about more liquidity, there’s a potential… that maybe the Federal Reserve is going to stop talking about raising interest rates”, Robert Pavlik, chief market strategist at Boston Private Wealth, said of the initial gains in futures.
Dow futures earlier fell 100 points in pre-market trade as concerns surrounding global growth, uncertainty in China and fresh lows in oil prices continued to grip markets.
U.S. stocks posted solid gains as further recovery in oil prices boosted investor sentiment. That news raised hopes that central bankers around the world would do what they can to offset some of the massive volatility that has engulfed markets so far in 2016. The broad Stoxx Europe 600 index was up 2.1%.
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Markets in Asia extended losses on Thursday , with the Nikkei ending around 2.4 percent lower.
