US stocks rally for third straight session led by energy shares
US stocks rallied for third- consecutive session as a result of improvement in energy shares with the price of oil going for an unexpected jump.
Not only this, better than expected economic data has further strengthened the stocks amid ongoing growth fears. It is to be noted that 9 out of the 10 S&P sectors have rallied with the energy shares improving by a total of 2.9 percent.
Energy shares lead US stocks towards new heights
The S&P 500 Index has reported its first 3- day rallying for the year 2016 and has come to an end with its biggest 3- day rise since the month of August 2015. In fact, the Dow Jones industries have been able to overcome all its losses incurred in February. However, the benchmark S&P 500 Index still remains at 5.7 percent lower value as compared to last year. It is to be noted that a sharp sliding in oil prices accompanied by fears of economic slowdown in China has left the entire global market space in a very tight spot.
On Wednesday, oil prices were seen rising by 7 percent soon after Iran rendered its support for a Russia and Saudi- led decision of freezing oil production. According to data, the production of oil in US industries has also risen the most in last 14 months in January this year.
The S&P 500 Index rallied by 31.24 points (1.65 percent) to settle at 1,926.82 while the Dow Jones Industrial Average improved by 257.42 points (1.59 percent) to settle at 16,453.83. The NASDAQ Composite Index rose by a total of 98.11 points (2.21 percent) to settle at 4,534.07 respectively.
Influence of the US Federal Reserve meeting
As soon as the US Federal Reserve released its minutes after the January meeting, the US indexes and stocks were seen improving gradually. Over the last month, Federal Reserve policymakers were in a fix due to worries regarding the global financial crisis affecting the US economy. This in turn led to the Federal Reserve’s decision of changing their plan of hiking the interest rates in 2016.