NEW YORK (AP) — A plan to support Europe's sagging economy rippled through markets in Europe and the U.S. on Thursday. The pledge by the European Central Bank to buy 1.1 trillion euros in bonds, lifted stock markets, pushed up government bonds and drove the euro to new lows.
KEEPING SCORE: The S&P 500 gained 15 points, or 0.7 percent, at 2,047 as of 1 p.m. Eastern time. The stock-market benchmark finished with its third straight day of gains on Wednesday, its longest winning streak in the new year.
The Dow Jones industrial average rose 119 points, or 0.7 percent, to 17,675 while the Nasdaq climbed 41 points, or 0.9 percent, to 4,709.
VOILA: In a much-anticipated move, the European Central Bank said it would start spending 60 billion euros on government and private bonds every month. That's slightly more than what markets expected. The ECB said the program will run 18 months, from this March until September of next year, but gave itself the option of extending the program if necessary.
A POSITIVE: "It's all about the ECB today," said Jeff Kravetz, regional investment strategist at U.S. Bank Wealth Management. "This is a very positive development. They have a reputation of overpromising and under-delivering, and today they delivered."
EUROPEAN STOCKS: Germany's DAX rose 1.3 percent and France's CAC-40 gained 1.5 percent. Britain's FTSE 100 advanced 1 percent.
EURO DIP: The euro weakened against the U.S. dollar, sliding to $1.1488. A weakened euro makes European goods cheaper, which could help boost exports from the region and lift inflation from dangerously low levels. The dollar index, which measures the greenback against a basket of major currencies, climbed 0.5 percent, putting it up 3.4 percent for the month.
OIL DRUBBED: Benchmark U.S. crude continued to languish after falling more 60 percent in the past seven months amid rising supplies and weaker demand. Crude fell $1.18, or 2 percent, to $46.60 a barrel in New York. Brent crude, the international benchmark, fell 22 cents, or 0.4 percent, at $48.81 a barrel in London.
DOUBTS: "It's hard not to see this as a positive, but there will be lingering doubts," said Chris Rupkey, chief financial economist at the Bank of Tokyo, in a note to clients. "They should not be telling people this will be a two-year program. It makes people think the economy won't be right for two years."
JET FUEL: Shares in Southwest Airlines surged after the carrier reported higher quarterly profit and revenue than Wall Street expected. The company said lower prices for jet fuel helped reduce costs, and estimated that it should save around half a billion dollars on fuel during the first three months of 2015. Southwest jumped $2.42, or 6 percent, to $44.26.
RAILS: Union Pacific said its fourth-quarter profit surged 22 percent as the railroad operator hauled more freight. The results topped analysts' estimates, driving Union Pacific's stock up $5.01, or 6 percent, to $44.49.
ASIA SCORECARD: Hong Kong's Hang Seng rose 0.7 percent, and South Korea's Kospi was flat. Japan's Nikkei 225 rose 0.3 percent and China's Shanghai Composite advanced 0.5 percent.