The three major US stock indexes rose about 1 percent each to record their biggest percentage gains in a month as investors grew confident that Britain would choose to remain in the European Union in Thursday's referendum. Markets across the globe have been rattled over the past two weeks as investors speculated about the consequences of Britain's exit, including the unravelling of the bloc.
The "Remain" camp has found 52 percent favour, according to an Ipsos MORI poll conducted on Tuesday and Wednesday. The final result of the referendum will be known on Friday. US markets also took solace in Fed Chair Janet Yellen's two-day testimony this week when she expressed optimism about the economy and downplayed the chances of a recession this year.
"Regardless of the outcome in the UK, we will see a relief rally in the US today and tomorrow," said Mohannad Aama, managing director, Beam Capital Management in New York. The CBOE Volatility Index, Wall Street's "fear gauge", fell 14.93 percent to 18.01, compared to its long-term average of 20. At 12:40 pm ET (1640 GMT) the Dow Jones Industrial Average was up 165.02 points, or 0.93 percent, at 17,945.85. The S&P 500 was up 20.15 points, or 0.97 percent, at 2,105.6. The Nasdaq Composite was up 58.64 points, or 1.21 percent, at 4,891.96. Nine of the 10 major S&P sectors were up, led by a 1.71 percent rise in the financials index, helped by J.P. Morgan and Citigroup. Utilities were down 0.1 percent.