US stocks up by as much as 1% as oil rout continues

US stocks were boosted by higher crude prices as the rout in the oil market intensified.

“Prices are starting to reflect the economic situation, which is helping to support the overall recovery,” said Chris Kresser, head of fixed income at Barclays.

The benchmark S&P 500 index of small-cap stocks rose by 0.4%, while the Dow Jones industrial average rose 1.7%.

“The Fed’s monetary policy has been very active and supportive of the market in the past few weeks, but we’re now seeing the Fed take a more aggressive stance on inflation, which will make it easier for the economy to rebound,” said Michael McGlone, chief investment officer at Capital Economics.

He said investors should be prepared for a slower pace of inflation, as the Fed starts to weigh the impact of inflationary pressures on the economy.

Prices rose on Tuesday after data showed consumer spending in the US increased in February.

Markets rose 0.6% in the fourth quarter, but analysts said the data was still a mixed bag.

“The economy has continued to pick up momentum after the last economic downturn, so the GDP numbers are a bit of a mixed message,” said John Bogle, founder and chief investment strategist at J.P. Morgan.

“There’s some good news in the GDP data, which supports the recovery in manufacturing, but that’s a mixed picture overall.”

Read moreThe Dow Jones Industrial Average rose 1,932.91 points, or 0.5%, to 26,924.43.

The Nasdaq composite gained 4,818.03 points, more than 6% to 2,828.89.

The Russell 2000 index of large-cap companies climbed 6.1%, while U.S. energy stocks gained 3.3%.

Related Post