Stocks rose Thursday after the Federal Reserve (Fed) said it would make $75 billion available to banks next week as part of its ongoing effort to ease the credit crisis. Stocks rose throughout the session as falling commodity prices, a stronger U.S. dollar, and signs of stabilization in the manufacturing sector gave investors an incentive to buy stocks punished in the recent sell-off. Gains accelerated in the late afternoon as the Fed detailed the first part of its new $200 billion lending plan, announced last week. Under the deal, financial companies will be able to bid on $75 billion worth of safe Treasury securities using some of their more risky investments as collateral. Investors on Thursday also welcomed a report that suggested a less pessimistic outlook for U.S. manufacturing. The Philadelphia Fed index, a regional manufacturing survey, improved to a reading of negative 17.4 in March from negative 24.0 the previous month. Investors ignored other economic reports that suggest the United States faces recession. U.S. jobless claims rose more than expected to the highest level since January; the February index of leading economic indicators fell 0.3 percent, as expected; and the Economic Cycle Research Institute said that the United States is in a recession. Light sweet crude oil for May delivery fell 70 cents to $102.54 a barrel on the New York Mercantile Exchange, one day after posting its biggest drop in 17 years. COMEX gold for April delivery plunged $25.30 to $920 an ounce after dropping $59 on Wednesday. Since hitting a record low versus the euro and a 12-year low versus the yen earlier this week, the U.S. dollar has recovered somewhat. The Dow Jones industrial average rose 261.66, or 2.2 percent, to 12,361.32. The broader Standard & Poor's 500 index rose 31.09 or 2.4 percent, to 1,329.51. The technology-heavy Nasdaq composite index rose 48.15, or 2.2 percent, to 2,256.11. The New York Stock Exchange composite index rose 168.06 to 8,717.56. The American Stock Exchange composite index was virtually unchanged, rising 4.74 to 2,191.15. And the Russell 2000 index rose 17.29 to 681.42.
