* Japan crisis set to drive trading
* FedEx up after qtrly results
* Jobless claims fall as expected
* Indexes up: S&P 1.4 pct, Dow 1.2 pct, Nasdaq 1.5 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to open)
By Edward Krudy
NEW YORK, March 17 (Reuters) - U.S. stocks rose on Thursday as investors snapped up beaten-down shares a day after Wall Street wiped out most of its gains for the year, but Japan's nuclear crisis was set to drive volatility.
In a sell-off Wednesday on the highest volume this year, the S&P 500 and Nasdaq turned negative for the year, while the Dow posted its worst daily decline since August as uncertainty about the extent of the calamity in quake-hit Japan panicked investors. For details, see [ID:nL3E7EH18S] and [ID:nTOPNOW4]
"This may still end up being a buying opportunity but the risks remain high as the market is trading on fear and speculation of a nuclear catastrophic event," wrote John Kolovos and Craig S. Peskin, co-heads of technical analysis research at MF Global, in a note clients.
Economic bellwether FedEx Corp
The Dow Jones industrial average <.DJI> gained 135.93 points, or 1.17 percent, to 11,749.23. The Standard & Poor's 500 Index <.SPX> climbed 17.16 points, or 1.37 percent, to 1,274.04. The Nasdaq Composite Index <.IXIC> advanced 38.06 points, or 1.45 percent, to 2,654.88.
Natural resource stocks helped lead the market as commodity
prices rebounded and tensions in the Middle East and North
Africa lifted oil. Cliffs Natural Resources Inc
Brent crude
U.S. consumer prices rose at their fastest pace in more than 1-1/2 years but inflation pressures remained generally contained, while new U.S. jobless claims fell last week, broadly in line with expectations. [ID:nN17148632] (Editing by Jeffrey Benkoe)