By Stephen Culp

NEW YORK (Reuters) – U.S. stocks ended higher on Wednesday as surging crude prices boosted energy shares and a swath of positive U.S. data suggested inflation has crested and the economic recovery remains robust, prompting a broad rally.

The three main U.S. stock indices gained strength with the economically sensitive smallcaps, cyclicals, and transport stocks leading.

Although value stocks held the lead at first, risk-on sentiment gained steam throughout the afternoon and expanded to growth stocks.

“Today marks the first time that growth and value stocks have performed well in some time. Chuck Carlson is the chief executive officer of Horizon Investment Services Hammond, Indiana. “It’s been either for most of the last weeks, and today it’s both,” he said. Investors love to know that breadth is important.

Numerous economic data pointed to waning inflation, an ongoing return of economic normalcy and supply restrictions that hampered factory output, despite hints from a host of other economic data.

Inflationary pressures in current times are temporary, as evidenced by the Federal Reserve’s latest monthly drop in import prices since October 2020.

The Federal Open Markets Committee will hold a two-day meeting next week to discuss the timing of the central bank’s asset purchase tapering.

This graphic shows the major indicators that are against the Fed’s average annual inflation target of 2%.

Unofficially, the rose 243.93 points, or 0.71%, to 34,821.5, the gained 38.19 points, or 0.86%, to 4,481.24 and the added 125.96 points, or 0.84%, to 15,163.72.

Among the 11 major sectors of the S&P 500, energy was by far the best performer, benefiting from a jump in crude prices driven by a drawdown in U.S. stocks.

Recent losses in U.S.-listed Chinese stock declined as weak retail sales data suggested a slowdown on the Chinese mainland. Furthermore, Beijing’s regulation overhaul of Macau’s casino sector further diminished Chinese investors’ appetite.

China has taken a number of steps to regulate major tech firms. This action has resulted in the loss of billions in market capital.

Carlson explained that buying Chinese stocks would prove difficult. Investors don’t always know which sector the future will bring.

He stated that he doesn’t expect the situation to improve anytime soon, and that it will likely continue to grow.

U.S.-based casino operators Las Vegas Sands (NYSE:) Corp, Wynn Resorts (NASDAQ:) Ltd and MGM Resorts (NYSE:) International closed lower.

Apple Inc (NASDAQ) has reversed the decline it experienced in recent sessions due to a negative court decision on its business practices and an unfavorable response at Tuesday’s event, where updates were made to its iPhone and other gadgets.

Lending platform GreenSky Inc surged after Goldman Sachs Group Inc (NYSE:) said it would buy the company in an all-stock deal valued at $2.24 billion.