New York: Wall Street shares powered higher on Thursday to extend their rally amid growing optimism on prospects for economic recovery as the market shook off the latest grim reminders of the depth of the slump.
The Dow Jones Industrial Average of 30 blue chips vaulted 174.75 points (2.25%) to 7,924.56 at the closing bell, extending the rally that has pushed the blue-chip index up more than 20% from 9 March lows.
The Nasdaq composite lifted 58.05 points (3.80%) to 1,587.00, as the tech-heavy index turned positive for 2009.
The broad-market Standard & Poor’s 500 index climbed 18.94 points (2.33%) to a preliminary close of 832.82.
Market action came after data showing a revised 6.3% pace of decline in the US economy in the fourth quarter, a modest revision from the prior estimate of a 6.2 % shrinkage.
A separate report showed the number of new jobless claims in the United States rose by 1.2% to 652,000 during the week ending 21 March as the country reeled from recession.
But analysts at Charles Schwab & Co. said that following other data and the growing government rescue plans being put into place, “optimism is preserved that the worst of the recession may be behind us.”