NEW YORK (
TheStreet) -- Stocks soared Thursday as optimism about China's economic growth and stimulus-friendly commentary from
Federal Reserve officials revived the risk-on trade.
The main driver for the buying was
rampant speculation that China's upcoming gross domestic product report will surprise to the upside. There was also a good bit of bullishness surrounding
(GOOG - Get Report) report, sending the stock up 2% in the regular session.
The Internet search giant
lived up to the hype, beating the consensus profit view handily and
announcing plans for a new class of non-voting shares that would essentially amount to a two-for-one stock split. The stock rose less 1% in the extended session.
Dow Jones Industrial Average leapt 181 points, or 1.4%, to close at 12,987. The
S&P 500 was up 19 points, or 1.4%, to finish at 1388 as all ten large-cap sector components rose, led by gains in materials. The
Nasdaq rose 39 points, or 1.3%, to settle at 3056.
China will release data for first-quarter gross domestic product Friday. Economists polled by
Dow Jones Newswires
estimate that the nation's economy expanded 8.3% during the period, after growing 8.9% during the fourth quarter. There were rumors among traders that China's first-quarter GDP growth could come in at 9%.
In Asia, Japan's Nikkei Average rose 0.7% and Hong Kong's Hang Seng index settled higher by 0.9%, snapping a three-day losing streak. London's FTSE closed up 1.3% and Germany's DAX rose over 1% amid easing yields for Spanish and Italian bonds.
Also, New York Fed president William Dudley hinted Thursday at more opportunities for stimulus, if warranted by signs of any economic deterioration. That followed comments from
Vice Chairman Janet Yellen, the right hand of Chairman Ben Bernanke, on Wednesday voicing her continued support for an extended period of low interest rates.
The highly influential Dudley, in prepared remarks for a speech in Syracuse, NY, said "it is still too soon to conclude that we are out of the woods, as underlined by the March labor market release;" and alluded to 2010 and 2011, when economic data looked brighter at this point in time, only to fade later in those years.
Twenty-six of the Dow's 30 components closed in positive territory.
(HPQ - Get Report)
was the biggest gainer, rising more than 7% after
reported a 1.9% year-over-year increase in worldwide PC shipments for the first quarter. HP increased its dominance, grabbing a 17.2% share of shipments.
Other blue chips gaining more than 2% included
Bank of America
Gainers far outpaced decliners in the broad market, 5 to 1 on the New York Stock Exchange and 3 to 1 on the Nasdaq.