US stocks jump 2.5%, joining global rally

US stocks jumped 2.5 percent Friday, joining a global rally after surprise stimulus by the Bank of Japan raised confidence of further central bank moves to boost growth.

The Dow Jones Industrial Average gained 396.66 points (2.47 percent) at 16,466.30.

The broad-based S&P 500 advanced 46.88 (2.48 percent) to 1,940.24, while the tech-rich Nasdaq Composite Index rose 107.28 (2.38 percent) to 4,613.95.

The Bank of Japan adopted a below-zero interest rate policy, essentially charging lenders to park their cash with it. The move helped spur stocks higher in Europe and Asia.

Stocks picked up further momentum following government data showing the US economy grew an anemic 0.7 percent in the fourth quarter. Analysts said the weak growth reduced the chances the Federal Reserve will move quickly to hike interest again.

"This basically sets the tone that central banks are going to have to boost the economy," said Peter Cardillo, chief market economist at First Standard Financial.

Stocks were also bolstered by oil prices, which rose for the fourth day in a row. The gain lifted petroleum-linked stocks, including Marathon Oil and Halliburton, which jumped 6.1 percent and 4.4 percent, respectively.

Chevron rose a more modest 0.6 percent after reporting a surprise loss for the fourth quarter due to the slump in oil prices. Chevron lost $588 million compared with net income of $3.5 billion in the year-ago period.

Amazon sank 7.6 percent after it reported fourth-quarter profits of $482 million, up from $214 million a year ago behind a 22 percent rise in revenue. Some analysts expressed worry about an outlook that included a projection for first-quarter operating income of $100-700 million.

But some other large technology shares rose. Apple and Intel both surged 3.5 percent and Cisco Systems advanced 3.0 percent.

Microsoft jumped 5.8 percent after reporting fourth-quarter net income of $5.8 billion in better-than-expected results that showed growth in its cloud-computing business.

Banking shares enjoyed a good session, with Citigroup gaining 5.4 percent, JPMorgan Chase 3.9 percent and Bank of America 4.5 percent.

Visa powered 7.4 percent higher on better-than-expected earnings, while Mastercard gained 6.7 percent after also beating analyst estimates.