Nevada News Reporter

Stocks surge as Dow jumps more than 200 points

Stocks surge as Dow jumps more than 200 points

Stocks jumped in afternoon trading Thursday as Wall Street tries to halt a two-day trading slide and return the major indexes back into the black for 2015. The Dow Jones industrial average was up more than 200 points, or 1.2% and the Standard & Poor’s 500 index jumped 1%. The Nasdaq composite index gained 0.7%. If the gains hold, the Dow and S&P will be positive for the year.2013-11-04T131020Z_8_CBRE99U0VX000_RTROPTP_3_MARKETS-STOCKS_original

The rally got a boost from bank stocks after the Federal Reserve said 29 of the 31 top U.S. lenders passed stress tests and banks responded with a flood of stock buybacks and dividend increases. Among the biggest bank gainers: Morgan Stanley was up 5%, Citigroup shares jumped 2.8% and JPMorgan Chase was up 1.4%.

Bucking the trend was Dow component Intel, which fell 4% after the tech company cut its first-quarter forecast. The lower outlook was due to softer-than-expected demand. The recent downturn in stocks was sparked by rising fears the Federal Reserve will begin raising interest rates as soon as June, a surging dollar and sinking oil prices. Investors will be watching for clues from a Fed policymakers meeting next week about the possible timing of a rate hike.

Benchmark U.S.crude oil tumbled 2.5% to $47.01 a barrel Thursday and the yield on the benchmark 10-year Treasury note fell to 2.09% from 2.11% the day before. Overseas, European markets were mixed as Britain’s FTSE index gained 0.6% and Germany’s DAX slipped 0.1%. Asian stocks rallied. Japan’s Nikkei 225 stock index added 1.4% and Hong Kong’s Hang Seng rose 0.3%.