Wall Street rallied Monday as oil prices fell back and alleviated some of investors' concerns about accelerating inflation. The Dow Jones industrials...
NEW YORK — Wall Street rallied Monday as oil prices fell back and alleviated some of investors’ concerns about accelerating inflation. The Dow Jones industrials gained 130 points.
Oil’s retreat helped soothe some of Wall Street’s worries about inflation’s impact on consumer spending.
The Dow climbed 130.43 points to 12,876.31.
Microsoft, one of 30 Dow stocks, added 60 cents to close at $29.99. Boeing, another Dow stock, was up 74 cents to end the day at $84.80.
Most Read Business Stories
- 6 Dr. Seuss books won't be published for racist images
- Frontier cancels flight, citing maskless passengers
- Biden vows enough vaccine for all US adults by end of May
- Amazon sued by Black cloud-computing manager over alleged racial discrimination and sexual harassment
- The penthouse atop Smith Tower is on the rental market for the first time
The Nasdaq composite index rose 42.97 points to 2,488.49. The Standard & Poor’s 500 index advanced 15.30 points to 1,403.58.
Crude oil briefly reached a new trading high of $126.40, but investors seemed shy, for the time being, at least, to add to oil’s huge gain of nearly $10 last week. Light, sweet crude oil fell $1.73 to settle at $124.23 per barrel on the New York Mercantile Exchange.
“This market does seem to be reacting positively to any sort of easing we see in the energy patch,” said Craig Peckham, market strategist at Jefferies & Co.
Investors also got some encouraging news about the credit crisis from London-based HSBC Holdings, which said its first-quarter profit was up from a year ago although the global banking company took a $3.2 billion write-down on subprime-mortgage assets in the U.S.
The company did echo other assessments that the U.S. was likely to fall into recession this year.
JPMorgan Chase CEO Jamie Dimon said at a conference Monday he estimates the credit-market crisis is 75 percent over, but that the recession is just beginning.
Monday’s gains showed investors are still willing to lay some bets, although some market watchers said Wall Street still will likely see stocks fluctuate as investors try to determine the economy’s direction.
Monday’s advance follows a week in which the major indexes all fell as worries about the impact of inflation weighed on investors.
Peckham said some of the buying was a natural move higher after last week’s decline, in which the Dow lost 2.4 percent and the S&P 500 declined 1.81 percent.
“This market, after having had a pretty rough last week, is prone to drawing in some more value-seekers,” he said.
The flow of first-quarter earnings reports is beginning to dwindle, so Wall Street will likely require some big news on the economy — such as a sharp reversal in commodities prices — to dislodge the markets from their current position, said Ted Oberhaus, director of equity trading at Lord, Abbett & Co.
“We’re the majority of the way through the earnings season and it has been relatively productive. With that as a backdrop, I would expect a range-driven appreciation over the next few months,” Oberhaus said.