US STOCKS-Wall St surges on China comments

* China denies report on euro-zone holdings

* GDP grows at slower pace than previous estimate

* Indexes up: Dow 1.6 pct, S&P 1.9 pct, Nasdaq 2.3 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early trading)

By Edward Krudy

NEW YORK, May 27 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) surged 2 percent
on Thursday after China denied a report it was reviewing its
holdings in euro-zone sovereign bonds due to the region’s debt
crisis.

The People’s Bank of China said a Financial Times report
that Beijing was concerned about its euro-zone exposure was
groundless. The report cut short a rally in the last session.

“The market is bouncing off oversold, but I think the big
catalyst this morning is comments coming out of China that
tempered concerns about the Chinese government possibly
trimming back its $600 billion plus of euro zone bond
holdings,” said Fred Dickson, chief market strategist at D.A.
Davidson & Co in Lake Oswego.

The Dow Jones industrial average (.DJI: ) rose 159.76 points,
or 1.60 percent, at 10,134.21. The Standard & Poor’s 500 Index
(.SPX: ) climbed 19.80 points, or 1.85 percent, at 1,087.75. The
Nasdaq Composite Index (.IXIC: ) added 49.94 points, or 2.27
percent, at 2,245.82.

The Dow jumped back above 10,000 and the CBOE volatility
index (.VIX: ) fell 12 percent to levels seen in the middle of
May before investors got rattled over the fragility of the
European banking system.

Data showing the U.S. economy grew at a slower pace than
expected in the first quarter was not enough to keep investors
from grabbing bargains after major indexes dropped more than 10
percent over the last month.

Financial and natural resource shares, among the casualties
in a recent sell-off, rose sharply. Citigroup Inc (C.N: ) was up
3.6 percent to $4, while United States Steel Corp (X.N: ) added
4.5 percent to $47.09.

Dow component Pfizer Inc (PFE.N: ) rose 1.4 percent to $15.32
after the drugmaker said it would stop recruiting patients for
a clinical trial for its heart drug Inspra because the study
reached its main efficacy goal early. [ID:nN27245149]

Stock Today

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Wall St surges on China comments