Australia markets closed

S&P 500 higher after banks’ shares surge

Eric Platt and Colby Smith in New York, Harry Dempsey in London and Hudson Lockett in Hong Kong

Wall Street staged a comeback on Thursday as a surge in shares of hard-hit US banks offset a slide in the value of large industrial groups after new data on US unemployment claims. The S&P 500 closed 1.2 per cent higher, after dropping roughly the same amount earlier in the day, while the tech-heavy Nasdaq Composite climbed 0.9 per cent. Shares in Wells Fargo and Capital One, two companies in the financial sector that had suffered heavy losses this year, rose more than 6 per cent. Other banks, including JPMorgan Chase and Bank of America, also rose more than 3 per cent.