U.S. stocks advanced to a four-month high as investors speculated banks don’t need as much capital as had been projected and a report showed employers cut fewer jobs than economists estimated.

Citigroup Inc. surged 17 percent as people familiar with the matter said the bank needs only about $5 billion. Zions Bancorporation, the Salt Lake City-based lender, jumped 26 percent on expectations it will be able to raise capital, while Lincoln National Corp. rallied 33 percent on earnings that topped estimates. The gains also came after ADP Employer Services said companies eliminated 491,000 jobs in April, 154,000 fewer than the average economist estimate.

The Standard & Poor’s 500 Index added 1.7 percent to 919.53 at 4:08 p.m. in New York, its highest close since Jan. 6. The Dow Jones Industrial Average rose 101.63 points, or 1.2 percent, to 8,512.28. Europe’s Dow Jones Stoxx 600 Index climbed 1.4 percent, while the MSCI Asia Pacific Index rose 0.5 percent.

(Bloomberg.com)