Positive economic data from the eurozone and encouraging remarks about the US economic outlook from a top Federal Reserve official helped Wall Street make modest gains on opening.

Investors flocked back to equities this afternoon following a stronger-than-expected rise in Europe’s industrial production numbers, which climbed 0.8% in April thanks to a weaker euro. The data helped boost European equities and support the euro today A separate report released on Friday by Moody’s Investors Service may have also acted as a catalyst for euro gains. Moody’s said they conducted their own stress test on European banks and found that they would be able to absorb losses stemming from their exposure to Spain, Portugal, Greece and Ireland. The reports helped to calm market nerves and restore some confidence in the European financial system.

Upbeat comments from James Bullard, the head of the Federal Reserve Bank of St. Louis, helped spur risk appetite as well. Mr Bullard said that 'the global recovery at this point looks very strong and seems unlikely to be derailed.'

The Federal Reserve President made it clear that while the sovereign debt crisis in Europe was a serious matter, it would not delay the Fed's decision to raise interest rates. He even went as far as saying the US stands to benefit from Europe's financial turmoil. Such bullish views are a rarity at the moment, and to come from a top Federal Reserve official makes it all the more compelling.

By 3.30pm (London time) the Dow Jones Industrial Average rose 69 points (+0.67%) to 10280.07, while the broader S&P 500 gained 9.11 points (+0.83%) to 1100.71 and the tech-heavy NASDAQ 100 advanced 22.90 points (+1.22%) to 1870.05.

Meanwhile, BP continued to grab the headlines today. The Obama administration is expected to request that BP create an independently administered fund to reimburse victims of the oil spill. White House officials were touting the idea on Sunday for funds to be held in escrow to cover any eventual claims, and Obama is likely to put forward the idea when he meets with BP executives on Wednesday.

By 3.30pm (London time) the Dow Jones Industrial Average was trading relatively flat at 2.45 points (+0.02%) above its previous close at 10174.98. The broader S&P 500 index was 1.33 points (+0.12%) higher at 1088.17, while the NASDAQ 100 advanced 10.75 points (+0.58%) to 1840.84.

Meanwhile, BP continued to grab the headlines today. The Obama administration is expected to request that BP create an independently administered fund to reimburse victims of the oil spill. White House officials were touting the idea on Sunday for funds to be held in escrow to cover any eventual claims, and Obama is likely to put forward the idea when he meets with BP executives on Wednesday.

Unsurprisingly, BP’s shares took another dive, fuelled by speculation that it may have its license to operate in the US revoked as punishment for causing the worst oil disaster in history. On the New York Stock Exchange ADR’s in BP dropped 5.52% to $32.10 while on the London Stock Exchange shares retreated 7.66% to 361.90p.

Tech stocks were the biggest gainers today, led by SanDisk Corporation, the memory chip manufacturer. Barron’s had reported that sales could rise as much as 17% off the back of its flash memory chips which are used in Apple’s iPad. Shares advanced 7.22% to $47.82. Intel and Hewlett-Packard were among the best performers on the Dow Jones, rising 2.03% and 1.78% respectively.

Investment banks took a hit today, on the view that they will be forced to spin off their highly profitable swap desks. It seems the change came after Paul Volcker, a former Federal Reserve Chairman, shifted his stance on the issue. JPMorgan was hit the hardest falling 1.62%, while Morgan Stanley lost 1.46%, Goldman Sachs declined 0.56% and Bank of America retreated 0.51%.

Elsewhere, Cablevision Systems announced that it will buy Bresnan Communications for $1.37 billion from private equity firm Providence Equity Partners. Cablevision’s shares initially dropped 3.3% on the announcement but it later pared all of its losses, gaining 1.83% to $23.83.