5 Jun 2009

Financials, surging commodities lift Wall Street

1:54 pm on 5 June 2009

US stocks rose on Thursday as a brokerage's upbeat view on US banks drove a run-up in financials.

Soaring prices of oil and other commodities lifted natural resource companies on bets the economic slump is waning.

RBC Capital Markets upgraded the banking sector, saying it is poised for a multiyear bull market. The KBW bank index added 4.8%.

Crude oil prices surged and underpinned the broader market after Goldman Sachs raised its year-end oil price forecast to $US85 a barrel, saying economic stabilization and tight supplies should bode well for prices.

US crude settled up 4% at $US68.81 a barrel on the New York Mercantile Exchange.

The Dow Jones industrial average gained 74.96 points, or 0.86%, to 8,750.24.

The Standard & Poor's 500 Index climbed 10.70 points, or 1.15%, to 942.46.

The Nasdaq Composite Index rose 24.10 points, or 1.32%, to 1,850.02.