U.S., European Stocks Rise, Oil Falls

stock market

The Dow and S&P 500 gained over 1 percent on Wednesday, adding to their rebounds made in the previous session, while oil prices dropped after U.S. data stimulated oversupply concerns.

European shares also gained, and equities’ trading was less volatile than on Tuesday. The Cboe Volatility Index, or VIX, lessened follow the sharp rise from earlier in the week.

“Now that the volatility event is over, investors will focus on the economic data and the fundamentals,” said Sameer Samana, a global equity and technical strategist. Samana also believes that equities may see more of a decline before investors are confident once again.

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The Dow Jones Industrial Average was up 378.68 points, or 1.52 percent, to 25,291.45, the S&P 500 rose 32.48 points, or 1.21 percent, to 2,727.62 and the Nasdaq Composite gained 54.36 points, or 0.76 percent, to 7,170.24.

The pan-European FTS Eurofirst 300 index was up 2.31 percent and MSCI’s gauge of global shares rose 1.06 percent. Emerging market stocks increased 0.18 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed the session 0.15 percent lower, while Japan’s Nikkei gained 0.16 percent.


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As for oil, prices declined. U.S. crude dropped 2.08 percent to $62.07 per barrel and Brent was last at $66.12, down 1.11 percent. U.S. data revealed an unexpected excess in refined products, encouraging fears of oversupply.

Last Friday’s spike in yields started the lows seen on Wall Street, forcing sales by a handful of highly leveraged funds, which increased volatility and encouraged more selling.

Investors are also concerned as U.S. lawmakers struggle to extend the debt ceiling, unless a stopgap bill passes Senate on Wednesday the funding for the U.S. government will end.

U.S. Treasury prices dropped prior to the Treasury Department was scheduled to auction new 10-year notes. Benchmark 10-year notes last fell 9/32 in price to yield 2.7999 percent.

The U.S. dollar gained against a basket of major currencies amid the gains on Wall Street. The dollar index increased 0.61 percent, with the euro down 0.68 percent at $1.2292.


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