Wall Street closed markedly higher on Thursday, with major indices posting their strongest gains in years. Results from Bear Stearns helped bring to an end the losing streak for investment bank stocks, while chipmakers rose on a brokerage upgrade.

At the close, the S&P 500 was up 2.1 per cent, or 26.12 points, at 1,256.16, its best day since October 2003, while the Nasdaq Composite was up 2.8 per cent, or 58.15 points, at 2,144.15, its best day since March 2004. The Dow Jones Industrial Average gained 1.8 per cent, or 198.27 points, at 11,015.19.