Stocks rebound on energy gains
US stocks rebounded Wednesday as high oil prices spurred a rally for energy shares. The rebound comes a day after US stocks reached an eight-week low on growing concern over military confrontation with Syria. The Arab nation of 23 million has been mired in turmoil for more than two years, with the army of President Bashar al-Assad pitted against dozens of Western-backed foreign and domestic rebel groups. The conflict reached a boiling point following a chemical attack that claimed the lives of more than 1,000 civilians.
Ongoing tensions in the Middle East have kept oil prices high for much of the year, as fears over a potential supply shortfall continue to weigh on investors. Egypt and Syria have been at the centre of the turmoil. An increasingly divided Middle East threatens to affect not only the region’s geopolitics, but also its oil production and distribution.
Brent for August delivery soared 1.7 percent to $116.30 a barrel. West Texas Intermediate, the North American benchmark, advanced close to 0.8 percent to $109.87 a barrel. The rise in oil futures spurred gains for Chevron Corporation and Exxon Mobile Corporation, two of America’s largest oil companies. Chevron shares soared more than 2.8 percent to $122.14. Year-to-date, shares have risen more than 7.6 percent. Exxon mobile advanced more than 2.3 percent to $88.84 a share.
The benchmark gauges advanced throughout the day, but the gains fell well short of erasing Tuesday’s massive selloff. The Standard & Poor’s 500 advanced more than a quarter percent to 1,634.96, after trading below its 100 day moving average. Since achieving a new record high August 2nd, the benchmark index has declined more than 4 percent. Speculation over federal stimulus and escalating violence in Syria are the biggest factors behind the S&P 500’s month-long skid.
The Dow Jones Industrial Average advanced more than 0.3 percent to 14,824.50. The NASDAQ Composite put up the biggest gains, rising 0.41 percent to 3,593.35.
Sorry. No data so far.