Investing.com - U.S. stocks moved higher in Friday trade, with the benchmark Dow bouncing between negative and positive territory, after European officials announced they would be taking steps to prevent further debt contagion in the euro-zone.
In late afternoon U.S. trade, the Dow Jones Industrial Average rose 0.61% to 11,503.50, the Nasdaq Composite Index gained 0.37% to 2,616.82, and the S&P 500 advanced 0.36% to trade at 1,213.50.
In a statement issued from Washington where the International Monetary Fund was holding its annual meeting, the Group of 20 major economies said it would be working in the next few weeks to expand the powers of the USD595 billion rescue fund to support troubled banks.
Officials added that the group’s aim was to “increase the flexibility” of the European Financial Stability Facility and “maximize its impact.”
G-20 officials had not planned on issuing a statement but decided to make a public announcement following recent sharp downturns on global equity markets and persistent fears of a contagion of euro-zone sovereign debt.
“We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks,” the statement said.
At the end of Friday’s European session, the STOXX 50 Index added 1.52%, France’s CAC 40 climbed 1.02%, Britain’s FTSE rose 0.24%, and Germany’s DAX advanced 0.63%.
Financial issues on Wall Street followed their European counterparts, posting gains in the Friday session with JP Morgan Chase & Co. adding 0.7%, Morgan Stanley sharply higher by 5%, and Bank of America Corp. surging 4.6%.
Sports apparel manufacturer Nike Inc. led gainers on the S&P 500, jumping 6.1% after the company reported first quarter profits above market expectations.
Among Dow issues, Hewlett Packard Co. led decliners as the world’s largest PC maker replaced its Chief Executive Officer amid stagnant company growth. HP shares fell 3.7%.
The International Monetary Fund and World Bank annual meeting in Washington was scheduled to conclude later Friday.