US stock markets scored solid gains on Thursday amid speculation of additional stimulus measures from China and after Spain announced a 2013 austerity budget.
The Dow Jones Industrial Average advanced 72.46 points, or 0.54 per cent, closing at 13,485.97.
The S&P 500, a broad measure of the markets, jumped 13.83 points, or 0.96 per cent, to 1,447.15, snapping a five-day slump.
The Nasdaq Composite added 42.90 points, or 1.39 per cent, to 3,136.60.
“US equities overcame some weak domestic data today to finish with solid gains on news that Spain has approved its 2013 budget,” Charles Schwab & Co. analysts said.
“The budget is said to meet or exceed all the EU recommendations, which clears the path for Spain to request a bailout.”
Disappointing US government data showed durable goods orders plunged month-over-month in August and an unexpected downward revision to second-quarter economic growth, to a mere 1.3 per cent, far below the prior estimate of 1.7 per cent.
Technology stocks outshone the rest of the market.
Apple added 2.4 per cent, Dow member Intel advanced 1.9 per cent and fellow blue-chip stock Cisco was up 1.2 per cent.
Intel rival AMD surged 3.3 per cent after unveiling new apps for personal computers.
In merger and acquisition news, memory-foam mattress maker Tempur-Pedic International soared 14.4 per cent after announcing it would buy rival bedding maker Sealy Cor. in a $US1.3 billion ($A1.26 billion) cash-and-debt deal. Sealy gained 2.3 per cent.
Bond prices fell. The 10-year Treasury yield rose to 1.64 per cent from 1.62 per cent Wednesday, while the 30-year yield climbed to 2.82 per cent from 2.79 per cent. Bond prices move inversely to yields.
