NEW YORK — Wall Street shot higher Thursday, extending its rally into a second session as tumbling energy prices bolstered an already upbeat mood that followed stronger-than-expected quarterly reports from big names such as JPMorgan Chase and United Technologies.
The Dow Jones industrial average rose more than 200 points, bringing its two-day advance to more than 480.
Investors got a double dose of good news after weeks of angst over the economy. Light, sweet crude fell $5.31 to settle at $129.29 a barrel; oil has dropped more than $15 in the past three sessions. Early Thursday, three components of the Dow industrials — JPMorgan Chase, United Technologies and Coca-Cola — issued comments that generally indicated their businesses are holding up despite sometimes difficult economic conditions.
The reports let investors put aside some of their worst fears about the economy. Still, Wall Street has had some up periods in the past few months as optimism grew, only to fall back into a downturn as worries about the financial sector and the economy have welled back up.
“The sentiment has just been so negative that even a whiff of positive news is driving the markets,” said Kevin Dorwin, principal at wealth- management firm Bingham, Osborn & Scarborough. “Oil is the key factor right now because inflation has been on the top of investors’ minds, and a reduction in the price of oil signals that perhaps inflation will not get out of hand. That’s very positive for both the stock and bond markets.”
Beyond oil, natural gas prices also fell sharply Thursday after the Energy Department said domestic stockpiles rose last week — signaling a drop in demand.
A sustained drop in energy costs would be welcome news for nearly all parts of the economy. Consumers have been hard-pressed by higher fuel and food costs.
The Dow rose 207.38, or 1.85 percent, to 11,446.66. The Dow on Wednesday surged 276 points after oil fell and Wells Fargo & Co. posted better-than-expected earnings.
Broader stock indicators also rose Thursday. The Standard & Poor’s 500 index advanced 14.96, or 1.20 percent, to 1,260.32, and the Nasdaq composite index rose 27.45, or 1.20 percent, to 2,312.30.
Corporate results helped buoy investor sentiment. JPMorgan Chase posted a 53 percent decline in its second- quarter earnings as mortgage and other loan defaults worsened, but the decline in profits wasn’t as steep as Wall Street had feared and the stock rose $4.86, or 13.5 percent, to $40.80.
