Wall Street rallied on Thursday as General Motors shares surged while optimism grew on easing Ireland's debt crisis.
Shares of General Motors gained more than 3 percent above its initial public offering price of 33 U.S. dollars on the first trading day as the car maker returned to Wall Street.
GM raised 23.2 billion dollars at a price of 33 dollar per share through its IPO, which includes 18.2 billion dollars from the sale of common stock and 5 billion dollars from selling preferred stock. The offering will reduce U.S. Treasury's stake from 61 percent to around 26 percent.
Concerns on Ireland was easing as the country is expected to receive tens of billions of euros in loans from European partners and the International Monetary Fund to help shore up its shattered banks.
In the latest economic data, initial jobless claims rose less than expected in the latest week. Claims for jobless benefits rose by 2,000 last week to 439,000, according to the Department of Labor.
The Dow Jones industrial average jumped 173.35 points, or 1.57 percent, to 11,181.23. The Standard & Poor's 500 index was up 18. 10 points, or 1.54 percent, to 1,196.69. The Nasdaq composite added 38.80 points, or 1.55 per cent, to 2,514.40.
Crude futures rebounded after a four-day loss as the euro rose against the dollar. Light, sweet crude for December delivery settled up 1.41 dollars at 81.85 dollars a barrel on the New York Mercantile Exchange.
