NEW YORK — A late-day surge pushed U.S. stocks sharply higher Thursday, propelled by a recovery in energy companies and bank stocks, which have been hit hard this year.
Investors were also encouraged by positive economic data, including improved orders for long-lasting goods that served as a sign that businesses were buying equipment and investing in their operations.
The Dow Jones industrial average rose 212.30 points, or 1.29 percent, to close at 16,697.29. The Standard & Poor’s 500 index rose 21.90 points, or 1.1 percent, to close at 1,951.70 and the Nasdaq composite rose 39.60 points, or 0.9 percent, to close at 4,582.21.
Stocks had been flat to slightly higher most of the day but added to their gains in the last hour of trading. The market — as it has done for weeks now — largely tracked the price of oil. U.S. crude oil closed up 92 cents, or nearly 3 percent, to $33.07 a barrel, while Brent crude, the global benchmark, rose 88 cents, or 2.6 percent, to $35.29 a barrel.
“Oil and the stock market are going to keep moving in tandem like this until oil prices stabilize,” said Jeremy Zirin, chief equity strategist at UBS Wealth Management.
Bank stocks got a reprieve Thursday after several weeks of downward pressure. The financials sector was the biggest gainer in the S&P 500. Morgan Stanley rose 4 percent, Goldman Sachs rose 2 percent, while Bank of America, U.S. Bancorp and Citigroup were up more than 1 percent each.
Bank stocks have been hit hard this year on expectations that the Federal Reserve will now be reluctant to raise interest rates, which boost bank profits.
“The fears about the banks are entirely about profitability. Investors were expecting the Fed to raise rates three to four times this year. Now we are looking at maybe one interest rate hike,” Zirin said.
Both U.S. and European markets fared well despite a drop in Chinese stocks overnight. The Shanghai composite fell 6.4 percent on renewed concerns about the country’s manufacturing sector and market liquidity.
