US stocks rallied on Thursday, with three major indexes clinching their biggest single-day gains in a month, as higher oil prices lifted energy shares like Exxon Mobil Corp and benign inflation data eased worries about interest-rate increases.
Intel Corp, the world biggest chip maker, advanced on expectations it would raise its forecast of revenue and profit, propelling other semiconductor shares higher. The tech-laden Nasdaq retraced its earlier climb to 4 1/2-year highs.
The Dow Jones industrial average was up 106.70 points, or 0.99 percent, at 10,912.57. The Standard & Poor's 500 Index was up 15.19 points, or 1.22 percent, at 1,264.67. The Nasdaq Composite Index was up 34.35 points, or 1.54 percent, at 2,267.17.
Exxon, the world's biggest publicly traded oil company, gained 2.3 percent to end at $59.35 on the New York Stock Exchange.
A rise of more than $1 in crude oil prices amid forecasts for colder-than-normal weather in the US Northeast also lifted ConocoPhillips, which finished up 4.1 percent at $62.97.
"Certainly energy continues to do well, but technology has also attracted increasing amounts of funds, and we're seeing growth stocks start to perform better than they have for some time," said Ernie Ankrim, chief investment strategist for Russell Investment Group.
An inflation index closely watched by the Federal Reserve - the core personal consumption expenditure price index - rose just 0.1 percent, only half the gain that Wall Street expected.
Also raising expectations that the Federal Reserve may be under less pressure to raise rates was a November report from the Institute for Supply Management, suggesting the manufacturing sector was growing but at a slightly slower pace than in the prior month.
The data heartened investors by "offering signs that inflation pressures are moderating at the same time that real growth is remaining strong," said Jeffrey Kleintop, chief investment strategist at PNC Corporate Bank.
McDonald's Corp, the world's largest fast-food company, rose 4.4 percent to $35.33 on the NYSE. A brokerage said it believed the company's stock was undervalued and that a future initial public offering of its Chipolte unit would add to McDonald's shares' value.
Aircraft maker Boeing Co was also a big gainer on the Dow, ending up 2.2 percent at $69.67, as was manufacturer 3M Co, whose stock rose 1.01 percent to $79.27, as investors snapped up blue chip stocks. Intel's gains helped push the Philadelphia Stock Exchange index of semiconductor companies to a 19-month high amid belief that strong year-end spending in the semiconductor sector could yield better-than expected profits.
Analysts are optimistic that Intel may raise its profit forecast when it gives its mid-quarter update next week.
Shares of General Motors Corp jumped 3.2 percent to $22.61 after the world's largest automaker forecast first-quarter vehicle production would rise 6 percent above year-ago output.
Wal-Mart, the world's largest retailer, said sales for December may rise at a slower pace than November. Wal-Mart's stock slipped 1.1 percent to end at $48.03.
Volume was heavy on the NYSE where about 1.89 billion shares changed hands, above last year's daily average of 1.46 billion. On the Nasdaq, volume was about 2.07 billion compared with last year's daily average of 1.81 billion.
Advancers outnumbered decliners by a ratio of more than 3 to 1 on the NYSE, and by more than 7 to 3 on the Nasdaq.