Stocks rallied Wednesday, with a late burst raising the Dow Jones industrial average past the 10,000 mark, as growth in U.S. retail sales bolstered optimism in the coming earnings season and investors speculated that European banks will pass stress tests.
The Dow closed up 274.58, or 2.82%, at 10,018.20; the S&P 500 rose 32.21, or 3.13%, closing at 1,060.27; and the Nasdaq composite was up 65.59, or 3.13%, to close at 2,159.47. All numbers are preliminary.
Retailers advanced as the International Council of Shopping Centers said sales were growing at the fastest pace since 2006, easing concern that a slump in consumer confidence will undermine the economic recovery.
Banks led the rally as State Street Corp. reported a profit and people with knowledge of the talks said European stress tests may assume a 17% loss on Greek bonds, half of the worst-case scenario estimated by J.P. Morgan Chase.