U.S. stock-index futures rose as investors speculated that the biggest equity rally since 1955, entering its third year today, will continue even after escalating violence in Libya sent the price of oil surging. Finisar Corp. (FNSR) slumped 34 percent in early New York trading as the maker of fiber-optic transmission gear forecast earnings that missed estimates. Bank of America Corp. climbed 0.3 percent as Morgan Stanley and Sanford C. Bernstein & Co. reiterated recommendations to buy the shares. Futures on the Standard & Poor’s 500 Index expiring this month rose 0.3 percent to 1,323.4 as of 6:35 a.m. in New York. Dow Jones Industrial Average futures gained 0.3 percent to 12,230, while Nasdaq-100 Index futures rose 0.1 percent to 2,335.25. “The general trend in stocks continues to be higher despite increasing concerns over inflation, debt, global conflict, rising interest rates and oil prices,” said Kully Samra, who manages U.K.-based clients for Charles Schwab Corp., which has $1.5 trillion in client assets. While some use “these issues to paint a gloomy picture, we remain optimistic and believe this growing ‘wall of worry’ will actually help elongate the bull run.” Unrest in Libya U.S. stocks advanced yesterday, snapping a two-day decline, as crude oil retreated from a 29-month high. The S&P 500 has fallen 1.6 percent from this year’s highest level on Feb. 18 as oil surged amid unrest in Libya and the Middle East. Still, the benchmark for U.S. equities has rallied 95 percent in the past two years as governments and central banks pumped in more than $12 trillion to prompt a recovery in the economy. Laszlo Birinyi, who told clients to buy as the S&P 500 fell to a 12-year low of 676.53 on March 9, 2009, says gains that added about $28 trillion to global share values will outlast previous increases as investors who missed the first phase play catch-up. Valuations are still below historical averages, said Barton Biggs, the hedge-fund manager who purchased stocks before the rally in March 2009. In Libya, rebel fighters came under fire from rocket barrages and air strikes as they battled Muammar Qaddafi’s forces east of the oil town of Bin Jawad. Brent crude rose on concern that the turmoil may spread to other oil-producing nations in North Africa and the Middle East, disrupting supplies to Europe. Brent for April delivery rose as much as 1.2 percent to $114.39 a barrel on London’s ICE Futures Europe exchange and traded at $114.02 at 9:59 a.m. local time. Earlier it lost 0.8 percent to $112.16. Repay Debts In Europe, yields on government bonds from Italy, Spain and Portugal advanced amid speculation that some of the region’s nations won’t be able to repay their debts. The yield on the Portuguese 10-year bond climbed to the highest since at least 1997, when Bloomberg began collecting the data. Moritz Kraemer, managing director of European sovereign ratings at S&P, warned some countries may have their credit ratings cut further while a Greek debt default is a “possibility.” German Chancellor Angela Merkel has said she will do “whatever is needed to support the euro,” and promised that meetings scheduled for March 11 and on March 24 and 25 will produce a “comprehensive” solution to the crisis. French President Nicolas Sarkozy said the monetary union is so important “that we will be there whenever it needs to be defended.” Finisar slumped 34 percent to $26.35 in German trading after saying it won’t earn more than 35 cents a share excluding some items in the fourth quarter, missing the average estimate by 31 percent. Bank of America gained 0.3 percent to $14.74. Morgan and Bernstein reiterated advice to buy the shares, citing a positive outcome of its investor day. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net. To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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