Stocks climbed further today as solid results from marquee names like Procter & Gamble Co. and McDonald's Corp. bolstered optimism about corporate profits.
Expectation-beating first-quarter earnings, paired with relief that the Iraq conflict appears virtually at an end, helped lift investors' hopes that corporate profits are on the mend.
Weaker oil prices were easing fears that corporate earnings will be hindered by high energy costs, while fading worries about the deadly SARS virus also gave investors the courage to step in and buy shares, analysts said.
"There's been a lack of bad news. The earnings have been in line or a little bit better," said Mr Todd Leone, head of listed trading at S.G. Cowen, adding that the blue-chip Dow index held above key support at 8,300.
The Dow Jones industrial average gained 151.19 points, or 1.82 percent, to 8,457.54, while the broader Standard & Poor's 500 Index rose 15.85 points, or 1.76 percent, to 914.66. The technology-laced Nasdaq Composite Index was up 24.88 points, or 1.73 percent, at 1,459.42.
NYMEX crude oil futures neared 5-month lows, falling to $25.68 a barrel after OPEC last week increased its total quota while curbing some overproduction allowed before the Iraq war.