Stocks rallied for a second straight session Wednesday, pushing to four-month highs even as oil prices showed a slight rebound after seven days of losses.
ASSOCIATED PRESS—Stocks rallied for a second straight session Wednesday, pushing to four-month highs even as oil prices showed a slight rebound after seven days of losses.
Although oil prices rose 21 cents to $63.97 a barrel on the New York Mercantile Exchange after the Department of Energy reported that crude inventories fell more than expected last week, investors were optimistic that the recent drop in oil would boost consumer spending and corporate profits.
Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors, said he was encouraged by a rise in technology stocks as well as small-company stocks in recent days.
”All of those are signs from the stock market that investbors are willing to take more risk,” he said.
According to preliminary calculations, the Dow rose 45.23, or 0.39 percent, to 11,543.32, reaching a new four-month high. The gains follow a more than 100-point rise in the blue chips Tuesday based in part on optimism about oil prices and consumer spending.
Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 4.96, or 0.38 percent, to 1,318.07, and the Nasdaq composite index gained 11.85, or 0.53 percent, to 2,227.67.