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Semiconductors lead the way for buoyant S&P 500

US stocks jumped yesterday as investors went on a buying binge. The S&P 500 turned positive for the year and rose above its 200-day moving average for the first time in a month, suggesting the recent downtrend may be ending.

The Dow Jones industrial average gained 213.88 points, or 2.10 per cent, to 10,404.77. The Standard & Poor’s 500 Index advanced 25.60 points, or 2.35 per cent, to 1,115.23. The Nasdaq Composite Index climbed 61.92 points, or 2.76 per cent, to 2,305.88.

Semiconductor shares led the way after two large Taiwanese chip producers pointed to growing global demand. Intel rose 2.8 per cent, while the Philadelphia semiconductor index shot up 5.5 per cent.

Stocks linked to global growth also rallied sharply, with heavy equipment maker Caterpillar up 4 per cent at $63.46.

Other multinationals with heavy exposure to Europe, such as aircraft maker Boeing, also climbed in sync with the euro. Boeing was up 4.1 per cent at $67.48 and contributed the most to the Dow’s advance.