Stocks deliver first three-day winning streak of 2016
U.S. stocks surged on Wednesdayy, with the S&P 500 rising for a third day in its longest winning stretch this year, as investors applauded crude oil's climb above $30 a barrel.
Energy and technology shares led the way as the S&P 500 (SPX) extended a bounce-back from last week's 22-month low, with its most beaten-down sectors fronting the gains. The Dow Jones industrials rose 257 points, or 1.6 percent, to 16,454. The S&P gained 31 points, or 1.7 percent, to 1,927. The Nasdaq added 98 points, or 2.2 percent, to 4,534.
"Three of the major headwinds of 2016 turned into tailwinds this week. First, the price of oil is bouncing on OPEC's talk of freezing production, we have a bounce in banks and the third thing is the economic data string for the month of January continues to surprise on the upside," said Art Hogan, chief market strategist at Wunderlich Securities.
A report Wednesday had manufacturing output increasing in January by the most since July 2015, while wholesale prices rose in January. Other data had new-home construction slowing last month.
While investors have been concerned that the slowing global economy would hit U.S. shores, first-quarter growth estimates are being raised, lately to between 2 percent and 2.5 percent, Hogan said. "It doesn't sound great, but it certainly doesn't sound like a recession."
West Texas Intermediate oil, the U.S. benchmark, gained more than 5 percent to close above $30 a barrel on hopes that producers would reach an accord on output.