US stock market posts 2012 best day

Published:  14 Mar at 6 PM

As reported by Reuters, the U.S. stock market has posted its best day for 2012, with JP Morgan Chase & Co bringing on Tuesday's late spark after it announced it would raise its dividend.

The news from JP Morgan preceded the Federal Reserve's announcement of figures from its most recent stress tests of American banks. The majority of the top banks performed well while their shares saw gains during trading following the closing bell.

As stocks advanced during the session, they were helped by higher-than-expected retail figures and benign comments by the Federal Reserve, which announced an easing on recent strains on money markets.

The S&P 500 finished at a level not witnessed since June 2008 in a signal that the market predicts a stronger U.S. economy during the coming months. The index was up 11% this year, having risen during five straight days and appearing ready for more gains.

Banks paved the way with a strong kick into the days end. JP Morgan Chase & Co soared 7% to $43.39 and became the Dow's best gainer after announcing it would raise its dividend, revealing a $15 billion stock-buyback programme, with an estimated $12 billion set aside for repurchase this year.

Rising 6.3% to $8.49 was Bank of America Corp, while an S&P index for financial stocks went up 3.9%.