US STOCKS-Dow hits 2009 high in rally on bigger risk appetite
* G20 pledge to keep aid flowing until recovery reassured
* Wells Fargo ups semis growth projection, shares jump
* Dow and Nasdaq up 2 pct, S&P 500 up 2.2 pct
* For up-to-the-minute market news, click [STXNEWS/US] (Updates to close)
NEW YORK, Nov 9 (Reuters) - A broad U.S. stocks rally sent the Dow industrials to a 13-month high on Monday, after the Group of 20 pledged to keep aid flowing to the world economy, strengthening investors' desire for risk.
The agreement by G20 finance ministers and central bankers over the weekend to keep stimulus in place boosted global stocks on the expectation of prolonged low interest rates. [ID:nLQ516726] and [ID:nL9362990]
The U.S. dollar briefly fell to a 15-month low, bolstering commodity prices and materials stocks. Freeport MacMoRan Copper & Gold Inc (FCX.N) shares shot up 4.6 percent to $83.20 and the S&P materials sector index .GSPM gained 3.2 percent.
"Central banks around the world are continuing to prop up the economy and support risk taking. There's very little regard for valuation," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.
"It looks to me like a pure risk rally and it is consistent with the G20 comments."
Shares of chipmakers rose sharply, with the PHLX semiconductor index .SOXX up 3.2 percent, its largest increase in a month. On Monday, Wells Fargo raised its 2010 growth projection for chipmakers. [ID:N09265661].
Among chipmaker shares, Applied Materials Inc (AMAT.O) rose 5.2 percent to $12.98 on Nasdaq and Micron Technology Inc (MU.N) shot up 6.1 percent to $7.51 on the New York Stock Exchange.
The Dow Jones industrial average .DJI jumped 203.52 points, or 2.03 percent, to 10,226.94. The Standard & Poor's 500 Index .SPX rose 23.78 points, or 2.22 percent, to 1,093.08. The Nasdaq Composite Index .IXIC gained 41.62 points, or 1.97 percent, to 2,154.06.
Lower interest rates worldwide make investing in risky assets like stocks more attractive, and reduce the cost of corporate financing used for investment.
Financial stocks were also top performers in the session, with shares of American Express Co (AXP.N) up 4.9 percent at $39.05. The KBW bank index .BKX gained 3.6 percent. Continued...
