Wall St. surges on higher oil after U.S. quits Iran deal

Reuters 

By Noel Randewich

Gains were broad and volume was high, with all but the utilities and telecom sectors advancing as investors who had moved to the sidelines in recent days ahead of Trump's decision returned to the market.

"It's classic 'buy on the terrible news'," said Ian Winer, at in Los Angeles, referring to the wider market's rally. "People had gotten way too nervous about this."

Trump's decision for the pull out of the international agreement aimed at preventing from obtaining a nuclear weapon was good for investors betting on a rise in prices. Crude hit its highest level in 3-1/2 years as investors bet the U.S. withdrawal would increase risks of conflict in the and curtail global supplies.

The index <.SPNY> jumped 2.03 percent, bringing its gain this quarter to 12.6 percent, more than any other sector.

"The rise in oil is helping energy sector, which is expected to be a pretty big growth sector. A lot of analysts are expecting strong earnings as oil rebounds, and that hasn't really played out so much early this year," said Shawn Cruz, at in

The <.DJI> rose 0.75 percent to end at 24,542.54 points, while the <.SPX> gained 0.97 percent to 2,697.79.

The <.IXIC> added 1 percent to finish the session at 7,339.91.

The <.VIX>, the most widely followed barometer of expected near-term volatility for the S&P 500, closed down 1.29 points at 13.42, its lowest close since Jan. 26.

Worries lingered that rising would perk up inflation. The U.S. 10-year Treasury yield rose to a two-week high and above the key 3 percent level on expectations of higher interest rates. [US/]

With March-quarter reports mostly wrapped up, earnings per share appear to have surged by 25.9 percent, helped by deep corporate tax cuts introduced this year, according to I/B/E/S.

In stock trading, Google-owner rose 2.87 percent, providing more lift than any other stock to the It was followed by , which rose 2.09 percent.

fell 3.13 percent after the retailer took a majority stake in Indian firm for about $16 billion.

dipped 1.79 percent despite reporting a quarterly profit above estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.65-to-1 ratio favored advancers.

The S&P 500 posted 40 new 52-week highs and 11 new lows; the recorded 168 new highs and 52 new lows.

Volume on U.S. exchanges was 7.1 billion shares, compared with the 6.6 billion-share average over the last 20 trading days.

(Additional reporting by in New York and Sruthi Shankar in Bengaluru; editing by and Jonathan Oatis)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 10 2018. 02:32 IST