S&P 500 Snaps Losing Streak as Energy Boost Coaxes Bulls From Hiding By Investing.com
By Yasin Ebrahim
Investing.com – The S&P 500 rose on Wednesday, as a red-hot rally in energy stocks paved the way for the broader market to end its streak of daily losses.
The rose 0.9% to snap a six-day losing streak. The gained 0.7%, or 236 points, the Nasdaq climbed 0.8%.
Energy rallied more than 3% as data showing a larger-than-expected draw in weekly inventories eased investor fears about the virus impact on energy demand.
The drop in crude oil inventories last week was 6.4 million barrels below analysts’ estimates of a draw at 3.5million barrels.
This sharp rise in oil prices is just days after OPEC+ increased its production by 400,000 barrels each day.
Cabot Oil & Gas (NYSE:), Occidental Petroleum (NYSE:), and EOG Resources (NYSE:) were among the top gainers in energy, with the latter up ending the day up more than 8%.
The megacap tech stocks escaped their early-day woes and ended mostly higher despite increasing Treasury yields which are the devil of growth stocks.
Alphabet Google (NASDAQ (NASDAQ), Apple (NASDAQ), and Amazon (NASDAQ (NASDAQ) all ended higher. Facebook (NASDAQ:), however, was a notable exception to the overall market growth.
Microsoft (NASDAQ) was the best performer with a more than 1% increase after increasing its dividend and announcing the $60 Billion stock buyback program.
According to reports, China seeks to improve regulatory oversight in Macau’s Asian gambling capital. Casino stocks fell.
Melco Resorts & Entertainment (NASDAQ:) slumped 14%, Wynn Resorts (NASDAQ:) fell 6%, and Las Vegas Sands (NYSE:) was down about 2%.
Moderna (NASDAQ:), meanwhile, released more data on so-called breakthrough cases of Covid-19, which it said supported the need for another round of the vaccinations.
Investors were able to digest mixed economic data. While manufacturing activity was below expectations, industrial production was consistent with forecasts.
“Demand is very high for a variety of goods in short supply, but manufacturers cannot keep up with demand due to a shortage of materials,” Jefferies (NYSE:) said in a note.
The move higher in the broader market comes as investors eye progress on President Joe Biden’s infrastructure spending plan.
Biden is scheduled to meet Wednesday at the White House with Krysten Sinema and Joe Manchin, two holdout Democratic Senators. Manchin, as well as Senema, support trimming the proposed $3.5 billion budget plan.
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