Wall Street surges on 2010 debut amid global equity rally

Wall Street surges on 2010 debut amid global equity rally

NEW YORK, Jan. 4 -- Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.

Energy sector lifted the market as crude spiked 81 U.S. dollars a barrel on optimism that a gradual U.S. economic recovery in 2010will boost demand for oil.

Traders work on the floor of the New York Stock Exchange in New York, the United States, Jan. 4, 2010. Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.

Meanwhile, the U.S. dollar fell against a basket of foreign currencies, also adding fuel to the rallying market.

The greenback gained support on Sunday from Federal Reserve Chairman Ben Bernanke's speech on the interest rates.

Bernanke said that stronger regulation was the best way to prevent financial speculation from getting out of hand and throwing the economy into a new crisis, but did not rule out higher interest rates to stop new speculative investment bubbles from forming.

Traders work on the floor of the New York Stock Exchange in New York, the United States, Jan. 4, 2010. Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.

However, the dollar fell against the euro and other major currencies on Monday as China's manufacturing industry expanded last month at the fastest rate in 20 months, and reports showed positive signs on manufacturing activity in Europe.

Stocks found further support on Monday from a report released by the Institute for Supply Management, which showed the ISM's manufacturing purchasing manager's index rose to 55.9 in December, well above economists' forecast of 54.0.

The Dow Jones surged 157.80, or 1.51 percent, to 10,585.85. Broader indexes also moved higher. The Standard & Poor's 500 index gained 17.89, or 1.60 percent, to 1,132.99 and the Nasdaq rose 39.27, or 1.73 percent, to 2,308.42.

Overseas markets also closed higher on Monday. In Europe, strength in commodity stocks and banks drove the British leading index to a 16-month closing high. The FTSE 100 closed up 87.46, or1.6 percent, at 5,500.34. In Asia, Japan's Nikkei average hit a 15-month closing high of 10,654.79.

Traders work on the floor of the New York Stock Exchange in New York, the United States, Jan. 4, 2010. Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.

A trader works on the floor of the New York Stock Exchange in New York, the United States, Jan. 4, 2010. Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.

Traders work on the floor of the New York Stock Exchange in New York, the United States, Jan. 4, 2010. Wall Street started the new year on a strong note on Monday amid a global equity rally, with the major indexes surging more than 1.5 percent.
(Shen Hong)