NEW YORK: A broad rally bolstered by a rebound in oil prices Tuesday drove major U.S. indexes to their biggest gains since March.
All 10 sectors of the S&P 500 rose, with gains in commodity-linked shares and financial stocks outpacing the broader market.
The Dow Jones Industrial Average gained 222.44 points, or 1.3%, to 17928.35. The S&P 500 rose 25.70 points, or 1.2%, to 2084.39. The two indexes posted their largest percentage gains since March 11.
Stock moves have been relatively small in the U.S. recently, after markets fell sharply and recovered earlier this year. Major indexes last notched a daily gain of at least 1% in mid-April.
Energy shares in the S&P 500 rose 1.8%, more than any other sector. U.S. crude-oil prices increased 2.8% to $44.66 a barrel, as supply disruptions in Canada, Nigeria and elsewhere helped alleviate concerns about the global glut of crude.
The Nasdaq Composite index added 59.67 points, or 1.3%, to 4809.88.
Assets that investors often consider havens, such as gold and U.S. government debt, were steady—a sign many weren’t convinced that the rally would last, traders and analysts said.
“It shows us investors want to be in this market, but they’re not fully committed,” said Jonathan Corpina, senior managing partner at Meridan Equity Partners.
U.S. stock-trading volume was 6.56 billion shares, below the daily average for the month and the year.
The yield on the benchmark 10-year Treasury note was unchanged at 1.760%. Gold for May delivery fell 0.1% to $1,263.90 an ounce.
The Dow industrials and S&P 500 are each up 0.9% this month and are off about 2% from the records they hit last May. But some investors have been struggling to reconcile the recent gains with a lackluster earnings season and weak economic growth.
“There are more headwinds than catalysts” to push stocks higher, said Jeff Carbone, managing partner at Cornerstone Wealth. He said he has been selling stocks, particularly technology shares lately, and holding a higher cash balance than he usually does.
Goldman Sachs Group was the biggest gainer in the Dow on Tuesday, up $3.91, or 2.5%, to 161.42, adding close to 27 points to the index. J.P. Morgan Chase rose 83 cents, or 1.4%, to 62.04. Financial shares in the S&P 500 rose 1.4%.
Consumer shares also rallied, but there were some weak spots, particularly among traditional retailers. Gap tumbled 2.51, or 12%, to 19.30 after the company warned on Monday about weak same-store sales.
Walt Disney dropped 5% in after-hours trading, following the company’s quarterly earnings results.
The Stoxx Europe 600 rose 0.9%, its largest gain since April 19.
Japan’s Nikkei Stock Average rose 2.2% on Tuesday.
The dollar was up 0.9% against the yen at ¥109.27 in late New York trading, offering some respite for investors as a stronger yen puts pressure on Japan’s exporters.
