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US stocks join global rally on better view of ECB stimulus

New York - US stocks joined a global rally Friday as investors reassessed the European Central Bank's massive stimulus package in a positive light a day after a wild ride on markets.

After 40 minutes of trade, the Dow Jones Industrial Average was at 17 148.15, up 153.02 (0.90%).

The broad-market S&P 500 advanced 17.48 (0.88%) to 2 007.05, while the tech-rich Nasdaq Composite rose 41.68 (0.89%) to 4 703.83.

Wall Street followed Europe's main stock markets higher as investors digested the ECB's mixed monetary policy announcement Thursday.

ECB President Mario Draghi had suggested that the eurozone's central bank was not planning further interest rate cuts after delivering a larger-than-expected package of actions, sending stocks lower Thursday.

Pointing to gains in European financial shares, Patrick O'Hare of Briefing.com said that investors decided the ECB did the banks a solid favor by introducing the new targeted longer-term refinancing operations and agreeing to include corporate bonds into its quantitative easing bond-buying programme.

"Sure, deposit rates went deeper into negative territory, but if Mr. Draghi is right and they aren't going any lower, investors must be thinking that they can now only go higher. That's a plus for net interest margins down the road," O'Hare said.

Analysts also pointed to market support from an International Energy Agency report that said falling oil prices "might have bottomed out". US oil prices opened 1.9% higher at $38.55 a barrel, spurring gains in oil-related shares.

Dow members Chevron and ExxonMobil advanced a respective 0.8% and 0.4%.

Blue-chip industrials scored big advances on the Dow, with Caterpillar up 1.7%, Boeing 1.8% and General Electric 1.3%.

JPMorgan Chase, the largest US bank, was up a modest 0.2%, while Citigroup leaped 1.2%, Goldman Sachs 1.1% and American Express 1.3%.

Ulta Salon, Cosmetics & Fragrance soared 14.6% after reporting estimate-topping results for the fourth quarter ended January 30 and a stronger-than-expected outlook for the first quarter.

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