New York: US stocks jumped on Thursday after news major central banks are preparing coordinated action if the results of Greek elections this weekend lead to turmoil in financial markets.
The central banks from major economies will take steps to stabilize markets and prevent a credit squeeze if necessary, Group of 20 officials told Reuters.
The news late in the trading day invigorated a market that has been highly volatile this week, whip-sawed by concerns the ballot in Greece on Sunday may set the stage for the country’s exit from the euro zone.
Energy was the top-gaining S&P sector, rising 1.7%, helped by a 2% rise in US crude oil prices. Chevron Corp was a top boost to the Dow, up 1.8% to $101.92.
Some of the initial pop in prices faded into the close, however, with Wall Street still seen subject to sharp swings. The Dow hit an intraday high up 1.6% but closed up 1.2%.
“I can’t imagine it as the start of the big move up because there are still many issues out there,” said John Manley, chief equity strategist at Wells Fargo Funds Management...READMORE