U.S. Stocks Jump in Final Hour, Metals Rally; Dollar Pares Gain

U.S. stocks rose, with the Dow Jones Industrial Average erasing a 167-point drop in the final hour of trading, on speculation the European Union may propose a solution for Greece’s budget deficit. Oil, gold and copper rebounded, and the dollar pared its gain.

The Dow rose 10.05 points to 10,012.23 at 4 p.m. in New York, and the Standard & Poor’s 500 Index rallied 0.3 percent after plunging 1.8 percent in what would have been the biggest two-day slump since March. The MSCI World Index cut its drop in half to 1 percent because of the recovery in U.S. stocks. Oil pared its loss to 1.8 percent and gold and copper climbed at least 0.3 percent in electronic trading after the close of commodities exchanges. The U.S. Dollar Index gained 0.5 percent.

Stocks and commodities had plunged around the world earlier on growing concern European nations will default on their debt. The recovery by U.S. equities showed confidence among investors that a solution will be reached in Europe. The retreat in American shares had been limited after the nation’s jobless rate unexpectedly fell to a five-month low of 9.7 percent. (more)