Stocks extend relief rally as tech, energy companies lead.
U.S. stocks extended their breakout on Wednesday, as the major benchmarks headed for their fourth consecutive daily advance.
All of Wall Street’s major indices finished in positive territory. The large-cap S&P 500 Index (NYSEARCA:SPY) climbed 0.4% to 2,584.94, with six of 11 primary sectors reporting gains. Information technology and energy shares were the best performers on the day.
The Dow Jones Industrial Average (NYSEARCA:DIA) climbed 90.43 points, or 0.4%, to 23,877.88.
Meanwhile, the technology-focused Nasdaq Composite Index rose 0.9% to close at 6,957.08.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) broke below 20.00 on Wednesday, touching a session low of 19.48. It would later settle at 19.66, having declined 4%.
In the commodity markets, oil prices staged a massive rally on Wednesday after U.S. government data showed a drop in weekly inventories. Commercial crude stockpiles fell by 1.68 million barrels in the week ended Jan. 4, the U.S. Energy Information Administration (EIA) reported Wednesday.
The West Texas Intermediate (WTI) benchmark for U.S. crude futures gained $2.38, or 4.8%, to $52.16 a barrel on the New York Mercantile Exchange. ICE Brent, the global crude benchmark, rose $2.47, or 4.2%, to $61.19 a barrel.
Crude markets are also benefiting from Saudi Arabia’s plan to lower crude shipments this month in an effort to boost prices. The oil-rich kingdom is planning to cut crude exports by 800,000 barrels per day compared with November levels.
The Final Word: Stocks have come back strong in the wake of a devastating pre-holiday selloff. The recent uptrend has been sustained by renewed optimism on the trade front after the U.S. and China wrapped up fruitful dialogue in Beijing.