Weak quarter ends with rise

U.S. stocks surged Friday to close out a sour quarter on a high note a s investors cheered an agreement by European leaders to stabilize the region’s banks, a pact that helped remove some of the uncertainty that has plagued markets.

The broad rally was the S&P 500’s best day since Dec. 20 and helped the benchmark index trim its quarterly loss to 3.3 percent.

The decline marked the S&P 500’s first down quarter in the past three after tumultuous Greek elections and concerns about the solvency of Spanish banks roiled financial markets around the world.

Among Wall Street’s few decliners in Friday’s session, Ford Motor Co. (F/NY) fell 5% to US$9.59 after the automaker became the latest large multinational to warn on weakness stemming from Europe, joining the likes of Procter

& Gamble Co. (PG/NY) and HewlettPackard Co. (HPQ/NY).

Sectors sensitive to eurozone developments ranked among the best performers. U.S. bank stocks were among the market leaders as the KBW bank index jumped 2.7%. Shares of Bank of Amer

ica Corp. (BAC/NY) rose 5.7% to US$8.18. The PHLX Europe sector index climbed 4%

Investors also cited end-of-quarter portfolio adjustments as helping to fuel Friday’s gains, in addition to the EU agreement.

The Dow Jones industrial average jumped 277.83 points, or 2.2%, to 12,880.09 at the close. The Standard & Poor’s 500 index rose 33.12 points, or 2.49%, to 1,362.16. The Nasdaq composite index climbed 85.56 points, or 3%, to 2,935.05.