Rebounding oil prices lift US stocks to record high.
US stocks rose on Monday, as rebounding oil prices lifted shares of commodity-sensitive sectors, resulting in record highs for two of the three major indexes.
The S&P 500 Index (NYSEARCA:SPY) climbed 0.5% to close at a new record of 2,402.32. Nine of the S&P 500’s 11 main sectors finished in positive territory, with energy and materials stocks among the biggest gainers.
Telecommunications services was the only sector to finish in negative territory on Monday.
Record highs were also reported in the Nasdaq Composite Index (NYSEARCA:QQQ), which rallied 0.5% to 6,149.67.
Meanwhile, the Dow Jones Industrial Average (NYSEARCA:DIA) advanced 0.4% to finish at 20,981.94, which is around 40 points shy of the all-time record.
A measure of expected volatility over the next 30 days held within a narrow range Monday, after edging lower the previous week. The CBOE VIX Volatility Index (NYSEARCA:VXX) closed at 10.42, on a scale of 1-100 where 20 represents the historical average.
Crude futures were up more than 3% in intraday trade after Russia and Saudi Arabia agreed to extend production cuts until March of next year to drain excess supply from the market. Nymex WTI futures settled up $1.17, or 2.5%, at $49.01 a barrel on the New York Mercantile Exchange. ICE Brent futures rallied $1.13, or 2.2%, to $51.97 a barrel.
The Final Word: Rebounding oil prices sent US equities to their biggest gain of the month, as the major equity gauges broke out of a narrow trading range. The outlook on Wall Street remains mostly positive even as the seasonal uptrend comes to an end.