Nasdaq up 2.3 per cent as US stocks gain

NEW YORK (AFP) - Beaten-down technology and banking shares jumped Tuesday as US stocks shrugged off a drop in oil prices to move firmly higher.

The Dow Jones Industrial rose 222.57 points (1.39 per cent) to 16,196.41.

The broad-based S&P 500 climbed 30.80 (1.65 per cent) to 1,895.58, while the tech-rich Nasdaq Composite Index jumped 98.44 (2.27 per cent) to 4,435.96.

Apple and Amazon both gained 2.8 per cent, while petroleum-linked shares were mixed following a drop in oil prices. Sentiment was boosted by a 3.3 per cent rise in the Chinese stock market and by big gains Monday in Europe, when US markets were closed, said Chris Low, chief economist at FTN Financial.

Banking shares rallied, with Goldman Sachs rising 2.0 percent, Citigroup 3.6 per cent and Bank of America 2.5 per cent.

US-listed Chinese stocks advanced. Alibaba climbed 8.9 per cent, Baidu 3.1 per cent and 8 per cent.

Online coupon company Groupon surged 41.2 per cent following news that Alibaba bought 33 million Groupon shares.

Home-security company ADT surged 47.5 per cent on news it agreed to be acquired by private-equity firm Apollo for US$6.9 billion.

Hormel Foods jumped 7.1 per cent as it lifted its 2016 earnings forecast from US$1.43-US$1.48 per share to US$1.50-US$1.56 per share following a 36.9 per cent rise in first-quarter earnings to US$235.1 million.