New York:U.S. stocks snapped a three-day decline, pushing the Dow Jones Industrial Average to its biggest rally this year, as takeover speculation boosted mining shares and General Motors Corp. jumped after an analyst upgrade.
Alcoa Inc. gained the most in the Dow average on a report that two companies are preparing bids for the world’s largest aluminum maker. GM, the biggest automaker, climbed to an 18-month high after Merrill Lynch & Co. said a $17 billion(Rs74,800 crore)pension surplus may cover some of the costs of a new labour contract.
The Dow industrials rose 102.30, or 0.8 percent, to 12,654.85, the best performance since 27 December 2006. The S&P 500 added 10.89, or 0.8 percent, to 1444.26, with all 10 of its industry groups posting gains. The Nasdaq Composite Index advanced 9.50, or 0.4 percent, to 2459.88.