US stocks gain on financial firms

New York, March 11: Major stock indices closed higher Wednesday amid gathering optimism about the US economy, with shares of financial firms leading the stock market.

US wholesalers reported a drop of 0.2 percent in inventories in January, which was widely interpreted as a sign of rising demand.

Share prices for major banks and insurers helped drive the increase in the broader stock market. The financial subset within the Standard and Poor's 500 Index was up for a ninth straight trading session, the sectors longest share rally in 12 years, according to the Bloomberg financial news agency.

The blue-chip Dow Jones Industrial Average added 2.95 points, or 0.03 percent, to 10,567.33. The broader Standard and Poor's 500 Index gained 5.16 points, or 0.45 percent, to 1,145.61. The technology-heavy Nasdaq Composite Index jumped 18.27 points, or 0.78 percent, to 2,358.95.

The US currency was off against the euro at 73.23 euro cents from 73.53 euro cents Tuesday. The dollar rose against the Japanese currency to 90.51 yen from 89.99 yen.

--IANS