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Wednesday, May 11, 2016

WallStreet Update: US stocks rose

It hasn't been like this for a while but the US stocks saw a surge yesterday and rose across the board, supported by the jump in oil price while rally in Amazon.com just made S&P 500 to reach its best day in two months.

Wall Street bullish

All three major averages closed about 1.25 percent higher in high volume trade, with the Dow up about 222 points.

S&P 500 jumped 1.25 percent to 2,084.39 while Nasdaq Composite added 1.26 percent to 4,809.88.

Amazon.com jumped 3.43 percent to a record of $703.07, giving the biggest boost to the S&P 500 and the Nasdaq.

All 10 major S&P sectors gained and seven of them were up over 1 percent, led by a 1.75 percent rise in the energy index. Oil rose over 4 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply.

International stock markets were helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken the yen.

With first-quarter earnings reports almost all in and not quite as bad as expected, investors have become more optimistic that the profit recession that has weighed on large-cap stocks for almost a year may be losing its grip.

The proportion of companies that have raised their forecasts versus those that lowered forecasts is the healthiest it has been since 2011, according to Thomson Reuters data.

Well, let's hope the good and bullish sentiments in the US will flow over to Malaysia as Bursa open at 9am.