Uncertainties relating to protectionism, vulnerabilities in emerging markets and financial market volatility remain prominent

Mario Draghi, president of the European Central Bank

new york — US stocks followed Europe higher on Thursday after investors ventured into risky bets again with encouragement from some strong earnings and the dollar rose against the euro after remarks from Europe’s Central Bank chief fueled fears about the monetary union.

Oil prices stabilized after an early sell-off as investors returned their focus to the fundamentals of supply and demand as equity markets regained some lost ground.

The Dow Jones Industrial Average rose 375.12 points, or 1.53 per cent, to 24,958.54, the S&P 500 gained 47.06 points, or 1.77 per cent, to 2,703.16 and the Nasdaq Composite added 196.21 points, or 2.76 per cent, to 7,304.61.

The pan-European STOXX 600 was darting in and out of positive territory. It rose 0.51 per cent and MSCI’s gauge of stocks across the globe gained 0.70 per cent.

The greenback rose against the euro after the ECB’s Mario Draghi reaffirmed that its €2.6-trillion ($2.97 trillion) asset purchase program will end this year and interest rates could rise after next summer even though the economic outlook has darkened and political turmoil looms in Italy.

The dollar index rose 0.18 per cent, with the euro down 0.15 per cent to $1.1374.

The Japanese yen weakened 0.28 per cent versus the greenback at 112.61 per dollar, while Sterling was last trading at $1.2823, down 0.44 per cent on the day.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.22 per cent lower, while Japan’s Nikkei lost 3.72 per cent.

But in China, the Shanghai SE Composite index managed to eke out a tiny gain after dropping as much as 2.8 per cent at one point.

While equity investors sought bargains and some were reassured by positive earnings and stronger technology stocks, they also voiced caution.

“There’s a sense of nervousness and caution because a lot of people were caught off guard by the drop yesterday,” Scott Brown, chief economist at Raymond James in St. Petersburg, Florida said. —

2.76% Rally in Nasdaq Composite to 7,304.61 points