Dow, Nasdaq jump more than 2 percent as oil slides

NEW YORK (Reuters) - U.S. stocks rallied on Friday, with the Dow and the Nasdaq gaining more than 2 percent, as a sharp decline in oil prices reduced inflation fears and improved prospects for stronger business and consumer spending. Big manufacturers gave the main boost to the S&P 500, with shares of General Electric (GE.N) and Procter & Gamble (PG.N) jumping about 3 percent. Microsoft (MSFT.O) and Cisco Systems (CSCO.O) also drove the market higher, in a sign of optimism related to business spending. The fall in oil came as the dollar notched broad gains, pressuring global commodity prices. U.S. front-month crude (CLc1) dropped $3.97 to $116.05 a barrel, more than $30 below its July record high. The Dow Jones industrial average (.DJI) gained 242.31 points, or 2.12 percent, at 11,673.74, while the Standard & Poor's 500 Index... [read full story]