Investing.com - U.S. stocks closed explosively higher Thursday on the release of upbeat U.S. economic reports and an announced European Central Bank bond buying program.
At the close of U.S. trade, the Dow Jones Industrial Average rocketed 1.87%, the S&P 500 index soared 2.04%, while the Nasdaq Composite index exploded 2.17%.
Launching the bullish rally, ECB President Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
The comments came after the ECB maintained the benchmark interest rate at a record-low 0.75%, in line with market expectations at its policy meeting earlier in the day.
Further lifting shares, payroll processing firm ADP reported U.S. non-farm private employment rose by a seasonally adjusted 201,000 in August, easily surpassing expectations for an increase of 140,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell by a more-than-expected 12,000 to a seasonally adjusted 365,000, compared to expectations for a decline of 7,000 to 370,000.
Amazon saw shares climb 0.67% ahead of its media event where the online retailer was expected to introduce a new version of its Kindle Fire tablet.
According to an earlier Bloomberg report, Amazon was expected to introduce at least three new devices, including a smartphone, later in the day.
Apple was up 0.17% following the news, as the iPhone maker has recently been facing growing competition in the smartphone market.
On Wednesday, Nokia released a series of Lumia models with the latest Microsoft Windows Phone software, while Google’s Motorola Mobility division unveiled a Razr phone whose 4.3-inch screen spans the entire device.
Elsewhere, shares in News Corp surged 2.36%, amid reports it cut this year's bonuses for four top executives, including mogul Rupert Murdoch and his son James, following the phone-hacking scandal at former British newspaper The News of the World.
Financial stocks also posted sharp gains, led by Bank of America, up 2.39%, and JP Morgan, with shares rallying 2.13%, while Citigroup and Goldman Sachs advanced 2.05% and 0.41% respectively.
In bearish news, shares in VeriFone Systems plummeted 9.75% after the maker of credit-card terminals reported third-quarter sales that fell short of analysts’ estimates, citing unfavorable currency swings, competition in Europe and a fire in Brazil.
At the close of European trade, the EURO STOXX 50 climbed 3.40%, France’s CAC 40 advanced 3.06%, while Germany’s DAX 30 jumped 2.91%.
Traders are anticipating the U.S. nonfarm payrolls and unemployment rate on Friday.
At the close of U.S. trade, the Dow Jones Industrial Average rocketed 1.87%, the S&P 500 index soared 2.04%, while the Nasdaq Composite index exploded 2.17%.
Launching the bullish rally, ECB President Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
The comments came after the ECB maintained the benchmark interest rate at a record-low 0.75%, in line with market expectations at its policy meeting earlier in the day.
Further lifting shares, payroll processing firm ADP reported U.S. non-farm private employment rose by a seasonally adjusted 201,000 in August, easily surpassing expectations for an increase of 140,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell by a more-than-expected 12,000 to a seasonally adjusted 365,000, compared to expectations for a decline of 7,000 to 370,000.
Amazon saw shares climb 0.67% ahead of its media event where the online retailer was expected to introduce a new version of its Kindle Fire tablet.
According to an earlier Bloomberg report, Amazon was expected to introduce at least three new devices, including a smartphone, later in the day.
Apple was up 0.17% following the news, as the iPhone maker has recently been facing growing competition in the smartphone market.
On Wednesday, Nokia released a series of Lumia models with the latest Microsoft Windows Phone software, while Google’s Motorola Mobility division unveiled a Razr phone whose 4.3-inch screen spans the entire device.
Elsewhere, shares in News Corp surged 2.36%, amid reports it cut this year's bonuses for four top executives, including mogul Rupert Murdoch and his son James, following the phone-hacking scandal at former British newspaper The News of the World.
Financial stocks also posted sharp gains, led by Bank of America, up 2.39%, and JP Morgan, with shares rallying 2.13%, while Citigroup and Goldman Sachs advanced 2.05% and 0.41% respectively.
In bearish news, shares in VeriFone Systems plummeted 9.75% after the maker of credit-card terminals reported third-quarter sales that fell short of analysts’ estimates, citing unfavorable currency swings, competition in Europe and a fire in Brazil.
At the close of European trade, the EURO STOXX 50 climbed 3.40%, France’s CAC 40 advanced 3.06%, while Germany’s DAX 30 jumped 2.91%.
Traders are anticipating the U.S. nonfarm payrolls and unemployment rate on Friday.