Business

US shares follow Europe higher

NYSE traders Image copyright Getty Images

(Close): Banks and other financial companies led another broad surge in US stocks, following strong gains for European markets.

It was the second rally in two days for Wall Street, which had been rattled by investor concerns over Britain's vote to leave the European Union.

The Dow Jones rose 284.96 points, or 1.64%, to 17,694.6.

The S&P 500 gained 34.68 points, or 1.7%, to 2,070.7 points, and the Nasdaq added 87.38, or 1.86%, to 4,779.2.

Citigroup jumped 4.2%, while American Express rose 3.5% and JPMorgan Chase gained 2.8%.

Several oil and gas production and transportation companies notched solid gains as the price of crude oil rose sharply.

The gains are "textbook buy-the-dip activity following a big sell-off," said Briefing.com analyst Patrick O'Hare. "It may be nice to see, but just be aware that the lack of a fundamental driver leaves the rally effort on tenuous ground."

Nike shares were the best performer on the Dow Jones, rising 3.84% despite reporting a fall in fourth quarter profit to $486m.