US stocks rise as energy stocks rally after big slump

NEW YORK – Stocks rose Thursday and recovered some of their steep losses from the day before. The price of oil also recovered from a big decline. That lifted energy companies, which have been struggling as energy prices tumble.

European markets also rose on hopes the European Central Bank will do more to aid the region’s economy.

In the U.S., energy stocks climbed as oil prices bounced back from their worst day in four months, and strong earnings from Verizon lifted telecom stocks. Blue chip stocks did better than the rest of the market. The Dow Jones industrial average had its second-best day of 2016.

The Dow added 115.94 points, or 0.7 percent, to 15,882.68. The Standard & Poor’s 500 index rose 9.66 points, or 0.5 percent, to 1,868.99. The Nasdaq composite index added less than half a point and closed at 4,472.06.

Stocks were on pace for much larger gains earlier in the day. The Dow was up 272 points shortly after noon, which would have canceled out Wednesday’s loss.

U.S. crude rose $1.18, or 4.2 percent, to close at $29.53 a barrel in New York.

Energy stocks have crumbled as the price of oil fell from $100 a barrel in mid-2014. The price of oil is the lowest it’s been since 2003.

European Central Bank head Mario Draghi said the ECB will consider using more stimulus measures at its next meeting in March as it tries to bolster the European economy. The prospect of more stimulus sent the euro down to $1.0875 from $1.0894 late Wednesday.

The ECB has been buying government-backed bonds as part of its efforts to stimulate the region’s economy. Yields on 10-year bonds issued by European countries dropped following Draghi’s remarks. That suggests investors expect government bond prices to rise further.

David Lefkowitz, senior equity strategist at UBS Wealth Management, said the ECB is responding to the current turmoil in the markets while the Fed wants to keep raising interest rates and Chinese economic policy seems to be in disarray.

Associated Press