Stocks rise after 3 days of losses

Photo by: DAVID KARP

ASSOCIATED PRESS

Photo

In this May 16, 2011 photo, traders work on the trading floor of the New York Stock Exchange. World stocks climbed Wednesday, May 18, shrugging off weak U.S. economic indicators as Asia got a boost from signs that Japan's post-tsunami recovery is quickening.

Associated Press

NEW YORK

Widespread gains in commodity prices lifted energy and materials companies as part of a broad stock-market rally Wednesday after three days of declines. Stocks built on morning gains after the Federal Reserve released minutes that showed that officials agreed that the economy is improving, which could lead to higher demand for raw materials such as steel and fertilizer.

The Fed’s bond-buying program has kept interest rates low and sent commodities and stock prices higher overall since late August. The U.S. stock market has gained nearly 25 percent since the central bank signaled that it would begin the asset-purchase plan. Commodity prices had fallen over the last two weeks after months of gains on concerns about the impact of high energy prices on the economy.

Oil gained nearly 4 percent to move back above $100 a barrel, due in part to a Department of Energy report that inventories of crude oil did not rise last week as expected. Energy stocks such as Chevron Corp. and Exxon Mobil Corp. rose nearly 2 percent.

The Dow Jones industrial average added 80.60 points, or 0.6 percent, to close at 12,560.18. The S&P index rose 11.70, or 0.9 percent, to 1,340.68. The Nasdaq composite gained 31.79, or 1.1 percent, to 2,815.