NEW YORK — Investors dived into stocks Thursday, extending a rally that gave the Dow Jones industrial average its best four weeks since 1933.
Stocks rose across the board in heavy trading following an accounting rule change that will help banks pare their losses and after commitments from world leaders to toughen regulatory oversight of financial institutions.
The Dow broke through 8,000 for the first time since Feb. 9 but ended slightly below that level ahead of the government’s employment report today that could easily upset the market if it comes in below forecasts — or send prices rocketing higher if it’s better than expected.
The Dow is up 20.4 percent over the last month, its biggest percentage gain in a four- week period since the spring of 1933.
Bits of good news about the economy in recent weeks, including better-than-expected numbers on housing and manufacturing, have given investors more reasons to buy.
The Dow gained 216.48, or 2.8 percent, to close at 7,978.08, after earlier rising as much as 314 points.
“People are worried about this (employment) report, so the last hour we sold off,” said Richard Campagna, managing director and chief investment officer of Pasadena, Calif.-based investment manager 300 North Capital.
Broader market indicators also rose sharply. The Standard & Poor’s 500 index gained 23.30, or 2.9 percent, to 834.38. The Nasdaq composite index rose 51.03, or 3.3 percent, to 1,602.63.
Industrial and consumer discretionary stocks picked up speed Thursday while demand for haven assets such as gold and Treasurys plummeted.
“Everyone is in a buying mood,” said Eric Ross, director of research at brokerage Canaccord Adams. “Everyone is feeling good. . . . A lot of this is simply confidence.”
