U.S. Markets Wrap: Stocks Gain on Stress Tests, Treasuries Rise

Stocks gained around the world as Federal Reserve Chairman Ben S. Bernanke said a review of banks’ health “should provide considerable comfort” and a report showing fewer job losses than forecast signaled the worst of the recession is over. Treasuries and oil gained. The dollar fell. Citigroup Inc., Deutsche Bank AG and Mitsubishi UFJ Financial Group Inc. jumped at least 4.6 percent and Fifth Third Bancorp rallied 59 percent. The government said U.S. banks need to raise only $74.6 billion, which Bernanke said should reassure investors about the soundness of the financial system. Exxon Mobil Corp. and BP Plc led an advance in energy companies as the jobs report boosted expectations fuel demand will increase. “Investors’ confidence seems to have returned,” said David Goerz, who oversees $17 billion as chief investment officer at Highmark Capital Management in San Francisco. “There’s relief from the results of the stress tests and interesting finds from the unemployment report.” The Standard & Poor’s 500 Index climbed 2.4 percent to a four-month high of 929.23 at 4:06 p.m. in New York, capping its eighth weekly advance out of the past nine. The Dow Jones Industrial Average added 164.8 points, or 2 percent, to 8,574.65. Almost seven stocks gained for each that fell on the New York Stock Exchange. The S&P 500, the benchmark index for U.S. shares, has rallied 33 percent since President Barack Obama said on March 3 that the market was a bargain for investors with a long-term perspective. The gauge added 5.9 percent this week, its best rally since the end of March, and extended its 2009 advance to 2.9 percent.