U.S. stocks bounced back on Thursday June 9 2011

U.S. stocks bounced back on Thursday June 9 2011 : U.S. stocks bounced back on Thursday after a six-day slide and oil prices jumped on supply concerns, while the euro fell after the European Central Bank kept its inflation forecast for next year unchanged.

Financial and energy stocks led the rally on Wall Street, which pushed the Dow industrials and the S&P 500 up 1 percent at midday. The Nasdaq Composite Index advanced 0.5 percent, matching the 0.5 percent gain in world stocks as measured by the MSCI index .MIWD00000PUS.

On Wall Street, investors snapped up stocks on the view that the market was oversold after a six-day slide. An S&P index of financial stocks .GSPF advanced 1.3 percent, while an S&P energy sector index .GSPE also rose 1.3 percent.

The Dow Jones industrial average .DJI was up 116.51 points, or 0.97 percent, at 12,165.45. The Standard & Poor's 500 Index .SPX was up 12.10 points, or 0.95 percent, at 1,291.66. The Nasdaq Composite Index .IXIC was up 12.66 points, or 0.47 percent, at 2,688.04.

Shares of Fusion-io Inc (FIO.N), which makes storage memory hardware and software for data centers, jumped 21 percent in their first day of trading. At midday, the stock was at $23 -- up from its initial offering price of $19.

Stock investors viewed a narrowed U.S. trade deficit as one positive point for growth in a recent avalanche of weak economic data. But the mood remained fragile with many analysts expecting the S&P 500 to retest its March 2010 lows after falling more than 6 percent since a peak in May.

"We're basically trading off technicals," said William Larkin, a portfolio manager with Cabot Money Management in Salem, Massachusetts.

"We're going to be in a very active trading range, and we just need a couple of key warnings -- on consumer confidence, energy prices, whatever -- and markets could continue to weaken."

The FTSEurofirst 300 .FTEU3 index of top European shares advanced 0.9 percent to 1,104.43 points.

U.S. Treasury yields fell to six-month lows after data showed initial jobless claims unexpectedly rose last week. The data added to recent evidence the recovery is stalling and stoked demand for safe-haven .

Benchmark 10-year notes US10YT=RR were trading with a yield of 2.98 percent. The yield dipped to 2.92 percent early on Thursday, marking the lowest since early December. For the latest updates PRESS CTR + D or visit Stock Market news Today

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