Global Stocks

European stocks rallied Thursday on expectations U.K. voters will choose to stick with membership in the European Union.

The Stoxx Europe 600 SXXP, +1.47% popped up 1.5% to 346.34, its strongest close since May 31, according to FactSet data. It was the fifth consecutive rise for the pan-European index. All sectors gained ground, led by financial SXFR, +2.18% telecommunications and oil and gas shares SXER, +1.91%

U.S. stocks closed higher Thursday, with all three indexes rallying, as investors wagered that the U.K. will choose to remain in the European Union in a historic referendum with far-reaching implications.

The S&P 500 index SPX, +1.34% gained 27.87 points, or 1.3%, to close at 2,113.32, regaining the psychologically important 2,100 level. Financial stocks led the gains, advancing 2.1%.

The Dow Jones Industrial Average DJIA, +1.29% jumped 230.24 points, or 1.3%, to finish at 18,011.07. Goldman Sachs Group Inc.. GS, +3.05% rose 3.1%, leading the gainers in the blue-chip index.Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.

Carnage came to world markets on Friday as major television networks said Britain had voted to leave the European Union, sending sterling on a record plunge and pummelling share markets around the globe.

Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from the major central banks.

Risk assets were scorched as investors fled to the safety of top-rated government debt and gold. Billions were wiped from share values as FTSE futures fell 7 percent FFIc1, EMINI S&P 500 futures ESc1 4.4 percent and Japan's Nikkei .N225 7 percent.

The British pound had collapsed no less than 17 U.S. cents, easily the biggest fall in living memory, to hit its lowest since 1985. The euro in turn slid 3.4 percent to $1.0997 EUR= as investors feared for its very future.

While vote counting had not been concluded, major British television networks including ITV, the BBC and Sky News all called the result as a "Leave" and betting firm BetFair estimated the probability of leaving as high as 94 percent.