The Straits Times
Published on Sep 06, 2012

US stocks surge on ECB bond plan, jobs data


NEW YORK (AFP) - US stocks surged on Thursday after the European Central Bank unveiled new bond-buying measures to ease eurozone financial turmoil.

Encouraging reports on the troubled US labour market, on the eve of Friday's August unemployment jobs numbers, underpinned the robust rally.

The Dow Jones Industrial Average soared 196.38 points (1.51 per cent) to 13,243.86. The S&P 500-stock index advanced 21.38 (1.52 per cent) to 1,424.82, while the tech-heavy Nasdaq jumped 47.97 (1.56 per cent) to 3,117.24.

The ECB left interest rates unchanged at 0.75 per cent. After the policy meeting, ECB president Mario Draghi unveiled the details of a new program to purchase an unlimited amount of up to three-year sovereign bonds of euro zone countries.