DOW - Stocks End Sharply Higher in Broad Rally

Dow

12,258.20

+191.40

+1.59%

By: Abby Schultz, JeeYeon Park

Stocks ended sharply higher after rallying throughout the session Thursday as an upbeat report on jobless claims and falling oil prices led investors to retrace losses from earlier in the week ahead of a key jobs report on Friday.

The Dow Jones Industrial Average surged 191.40 points, or 1.6 percent, to close at 12,258.20, its biggest gain since Dec. 1, and highest close since Feb. 18.



The S&P 500 gained 22.53 points, or 1.72 percent, to close at 1,330.97, the biggest gain since Dec. 1, and the highest close since Feb. 18.


The tech-heavy Nasdaq gained 50.67 points, or 1.8 percent, to close at 2,798.74, also the highest close since Feb. 18.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell more than 10 percent to below 19.

"I think the market is very pleased about the initial jobless claims numbers," Jeremy Zirin, chief U.S. equity strategist at UBS Wealth Management. "The most lagging component of this recovery has been jobs, and now we’re starting to see a pick up."


In the day's economic news, initial claims for unemployment fell 20,000 to 368,000 last week, the lowest level since May 2008, the Labor Department reported. The fact that claims have been below 400,000 for the second week is considered a signal that job growth isn't far behind.

The upbeat claims number has, in fact, raised expectations that the government jobs report on Friday will show strong gains. Economists expect the Labor Department to report a 185,000 rise in nonfarm payrolls, and a 190,000 gain in private-sector jobs, according to Reuters.

Some economists, have revised their estimates upward in light of the claims number, and news that the private sector added 217,000 jobs last month, according to ADP Employer Services and Macroeconomic Advisers.