US stocks got a boost Thursday despite poor domestic economic data after major central banks joined hands to ensure US dollar liquidity to Europe’s embattled banks.

In positive territory for the fourth day in a row, the Dow Jones Industrial Average closed up 186.45 points (1.66 per cent) at 11,433.18

The broader S&P 500 rose 20.43 points (1.72 per cent) to 1,209.11, while the tech-heavy Nasdaq Composite gained 34.52 points (1.34 per cent) to stand at 2,607.07.

The markets were strong from the opening but fell off after a series of economic indicators – on weekly jobless insurance claims, inflation, and business conditions – reinforced beliefs that the economy is stagnating.

But stock prices surged again after the European Central Bank, along with its US, Japanese, Swiss and British counterparts, announced they would act in concert to inject extra US dollar liquidity into banks facing a shortage of the US currency.

The announcement sent European stocks soaring – the key eurozone bourses all closing up more than three per cent – and the sentiment spilled over to the Unite States.

“The rally was fuelled by an announcement that major global central banks will work together to provide further US dollar funding to the world’s financial system, taking pressure off funding issues across European banks,” said analysts at Charles Schwab.

All 30 Dow blue-chips traded higher, led by Bank of America, which added 4.0 per cent after it said it would raise another $US1.5 billion in cash through the sale of a stake in Hospital Corporation of America to the hospital owner-operator itself.

On the Nasdaq, Netflix plunged 18.9 per cent after slashing its forecast for subscriber growth.

Netflix cut its third-quarter US subscriber forecast from 25 million to 24 million, the result, analysts said, of a sharp increase in subscription prices in July.

Bond prices fell, despite expectations that the Federal Reserve next week could reveal a new policy aimed at reducing long-term yields.

The 10-year Treasury bond yield rose to 2.09 per cent from 2.01 per cent late Wednesday, while the 30-year bond moved to 3.35 per cent from 3.31 per cent.

Bond prices and yields move in opposite directions.