The S&P 500 added 0.1% to 1,369.31; the Dow 0.2%, to 12,626.03 and the Nasdaq 0.1% to 2,363.3.
It was a replay of the day before's trading, made more cautious by lengthy testimony in Washington by key players in the rescue of Bear Stearns by the Fed, with the very active support of the US Government.
As well US unemployment rolls swelled in a precursor, some thought, of a 50,000 job loss in tonight's employment data.
Reports of stronger activity from the services sector offset the higher benefits lists and investors were selective in what they took from the Bear Stearns hearings, preferring the line that the Fed will back the markets in any future problems. investors took that to mean that troubled investment banks and other leveraged non-banks will be saved. That is not what was said in Washington.
The CEOs of both JP Morgan, Bear Stearns, Fed Chairman Ben Bernanke and other regulators told the Senate that the rescue prevented what could have been a disaster for the financial system and the economy.
New York light crude fell 73 cents to $US104.10 a barrel, petrol prices hit a record high of $US3.289 a gallon and April gold on Comex rose $US9.80 to settle at $US905 an ounce.
In Europe though worries about banks and the US jobless numbers saw markets lower in all 18 western European countries except Iceland and Portugal. London's FTSE 100 lost 0.4%, while France's CAC 40 fell half a per cent as did Germany's DAX.
The MSCI Asia-Pacific Index gained 1.3%, adding to Wednesday's 3.2%. Shanghai led the region's bourses, while Australia also did well as strong commodity prices helped miners, and energy companies.
In fact Australia reached a five week high yesterday as the banks and financials also surged strongly, along with miners. Rice prices hit another record and palm oil rose. The ASX 200.closed 1.9% was higher at 5,608.90. Tokyo's Nikkei closed 1.5% higher.
In Hong Kong, the Hang Seng index ended 1.6% higher and the sub-index of mainland companies listed in the territory added 2.6%. The Shanghai composite index rose 2.9% – the biggest gain in the region. But Indonesian shares dropped sharply as a sudden rise in inflation in March spooked the market which fell 4.5%.
The Australian share market shrugged off a weaker Wall Street and pronouncements that the US could be in a recession to close higher today as the miners and energy companies took heart from a weaker US dollar and better commodity prices overnight.
The benchmark ASX200 rose 1.93% higher and the All Ordinaries gained or 1.82%. BHP Billiton rose strongly $1.34 to $38.09 and Rio Tinto advanced $4.79 to $130.15.
The major banks had good gains, with the NAB adding $1.42 to $31.92; the ANZ added on 60 cents to $24.14; Commonwealth Bank $1.12 to $45.41 and Westpac 68 cents to $25.60.
