US stocks surge as tech, banking sectors lead

New York - The Dow jumped more than 1.3 percent Wednesday as a broad-based rally led by technology and banking shares snapped a week of anaemic trade in US equity markets.

The Dow Jones Industrial Average surged 236.36 points (1.33%) to 18 000.40.

The broad-based S&P 500 rose 25.05 (1.20%) to 2 105.20, while the tech-rich Nasdaq Composite Index gained 62.82 (1.25%) to 5 076.69.

Stocks were helped by midday news that German Chancellor Angela Merkel and French President Francois Hollande would meet with Greek Prime Minister Alexis Tsipras on the sidelines of an EU-Latin America summit, encouraging hopes for a deal extending Greece's bailout funding.

But analysts attributed the strong gains primarily to a rally after four straight days of either negative or flat trade.

"You're seeing buyers step in and take advantage of a market that has been under pressure during the last trading days," said David Levy, portfolio manager at Kenjol Capital Management.

"It's a relief rally on oversold conditions."

Large technology stocks were especially strong, with Dow member Microsoft gaining 2.1% and Facebook and Google both rising 1.9%. Apple rose 1.2%.

Banking shares also thrived. Dow members JPMorgan Chase and Goldman Sachs jumped 1.6% and 2.0%, while Bank of America added 1.6%.

Petroleum-linked shares rose in tandem with oil prices. Anadarko gained 1.7%, ConocoPhillips added 1.5% and Halliburton surged 2.1%.

Netflix bolted 3.7% higher after shareholders approved a measure to increase the company's share count, a step that is expected to lead to a stock split.

Johnson Controls, which specialises in energy efficiency products for buildings and autos, surged 3.9% after announcing a strategic review of its auto business that could result in a sale of the division. Johnson said it enlisted Goldman Sachs and Centerview Partners to serve as financial advisers.

Regeneron Pharmaceuticals fell 2.6% after an FDA advisory committee approved its Praluent treatment for lowering cholesterol. However, the approval was "not as clean and positive as expectations" as committee members "seemed hung up" on the lack of outcomes data and the safety of the medicine, said a note from RBC Capital Markets.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.49% from 2.43% on Tuesday, while the 30-year advanced to 3.21% from 3.16%.