NEW YORK: Financial and energy shares lifted U.S. stocks to slight gains Wednesday.
Stock markets around the world have rallied since mid-February as global growth fears eased, oil prices rebounded and the Federal Reserve signaled a slow path of interest-rate increases. Shares of commodity-sensitive firms have been some of the biggest winners in this period, helping push major U.S. indexes back near all-time highs.
Some investors say they are encouraged by the broad gains in U.S. stocks. More stocks have participated in the rally than just a few big gainers, and shares of both large and small companies have advanced.
“The market is in a stronger position today as we approach all-time highs than it was a year ago,” said Hank Smith, chief investment officer at Haverford Trust, which manages $6.5 billion in assets.
Expectations for swings have diminished as U.S. stocks have clambered back near records. The CBOE Volatility Index, which is based on prices of S&P 500 options that investors tend to rush to when they are fearful of stock declines, hit a fresh intraday low for the year, touching 12.50. The index ended 0.3% higher at 13.28, its third-lowest close this year.
U.S. government bonds fell, lifting the 10-year Treasury yield to 1.852%, from 1.783% Tuesday, for the largest one-day yield gain since March 1.
The Dow Jones Industrial Average added 42.67 points, or 0.2%, to 18096.27. The blue-chip index rose as much as 114 points during the session.
UnitedHealth Group shares rose $3.43, or 2.6%, to $133.93, contributing 23 points to the Dow’s advance. The company raised its 2016 earnings guidance and on Tuesday said it would pull out of nearly all of the Affordable Care Act’s exchanges.
The S&P 500 edged up 1.60, or 0.1%, to 2102.40, and the Nasdaq Composite advanced 7.80, or 0.2%, to 4948.13.
Financial shares led the S&P 500 higher, while utilities posted the biggest declines. That is a reversal of what has happened so far this year, with financial stocks slipping 1.3% year to date and utilities gaining nearly 11%.
Energy stocks notched the second-biggest advance in the S&P 500, rising 0.8%. Those shares turned higher along with oil prices after an unexpected and sharp drop in U.S. distillate stockpiles. U.S. crude oil rose 3.8% to $42.63 a barrel.
“There’s a sense of confidence that oil has established a new trading range,” said Giles Fitzpatrick, partner at London’s Hannam & Partners.
In other corporate news, MGM Growth Properties rose 1.01, or 4.8%, to 22.01 in its stock-market debut after the offering priced at $21 a share.
Coca-Cola fell 2.23, or 4.8%, to 44.37 after it said revenue and profit declined in its latest quarter.
Investors also were looking ahead to the European Central Bank’s April meeting on Thursday. While few expect policy makers to announce new moves after the central bank’s comprehensive easing package last month, European Central Bank President Mario Draghi could comment on future interest-rate cuts and the recent strength of the euro.
The Stoxx Europe 600 rose 0.4%. The euro fell 0.5% against the dollar to $1.1298.
“There is some risk that at the press conference tomorrow following the ECB meeting, Draghi may be more forceful in resisting premature tightening,” said Marc Chandler, head of currency strategy at Brown Brothers Harriman.
The moves also followed a rocky session in Shanghai, which left some investors nervous that a recent rally in Chinese stocks may have run its course. The Shanghai Composite Index fell 2.3%, its biggest drop since Feb. 29.
