Stocks Rise Sharply Amid Falling Oil Prices and Lower Bond Yields
U.S. stock indexes closed sharply higher on Thursday as falling crude oil prices reduced concerns about inflation, which in turn led to lower bond yields. The S&P 500 rose by 1.14%, the Dow Jones Industrial Average gained 0.61%, and the Nasdaq 100 climbed 1.73%. Futures for both major indexes also showed strong gains ahead of Friday's session. The drop in oil prices came amid signs that supply disruptions from the Middle East are easing, which helped ease inflation fears. WTI crude fell nearly 1% on Thursday after a report indicated increased throughput at the Strait of Hormuz and Saudi Arabia’s efforts to restore pipeline capacity following drone strikes last week. The U.S. Federal Reserve's recent rate hike also reassured investors that it remains focused on controlling inflation. Economic data was mixed, with unexpected declines in housing starts and building permits offset by a stronger-than-expected drop in initial jobless claims and an improved Philadelphia Fed business outlook survey.
Topics: bond_yields fed_policy oil_prices stock_indices