* GM jumps 7 percent on first day of trading
* Optimism over Ireland debt deal sparks broad rally
* Dow up 1.6 pct, S&P up 1.7 pct, Nasdaq up 1.8 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)
By Ryan Vlastelica
NEW YORK, Nov 18 (Reuters) - U.S. stocks rose more than 1 percent on Thursday as General Motors shares surged in their trading debut and optimism grew for a deal to ease Ireland's debt crisis.
General Motors Co [GM.N] shares gained 7 percent to $35.31 in the debut of its initial public offering, the biggest in U.S. history. GM accounted for nearly 12 percent of composite volume, according to Thomson Reuters data. For details, see [ID:nN18281169]
"The company has rid itself of a lot of liability costs, so there is good reason for this excitement and demand," said Paul Larson, equities strategist at Morningstar in Chicago. "And with all the pent-up demand for vehicles, the outlook for the whole industry is very bright."
Ireland's central bank chief expected the country to receive tens of billions of euros in loans from European partners and the International Monetary Fund to help shore up its shattered banks and stabilize the economy. [ID:nLDE6AH0HV]
U.S.-listed shares of Bank of Ireland
Relief over Ireland prompted a broad rally, with most S&P sectors gaining more than 1 percent. The S&P materials index <.GSPM> was up 2.6 percent, while the financials index <.GSPF> climbed 1.8 percent. Concerns over European sovereign debt woes have weighed on equities, with the S&P 500 down nearly 4 percent since Nov. 5.
"The fear was what would happen if Ireland were to go down, what reverberations and aftershocks we were going to see," Larson said. "What this does is to steady that first domino."
The Dow Jones industrial average <.DJI> jumped 171.49 points, or 1.56 percent, to 11,179.37. The Standard & Poor's 500 Index <.SPX> advanced 19.44 points, or 1.65 percent, to 1,198.03. The Nasdaq Composite Index <.IXIC> added 44.23 points, or 1.79 percent, to 2,520.24.
In the latest economic data, initial jobless claims rose less than expected in the latest week, while factory activity in the U.S. Mid-Atlantic grew much more than forecast, and a gauge of future U.S. economic activity rose solidly in October. [ID:nN18277350] [ID:nN18248194] and [ID:nN18277754]
Sears Holding Corp