US stocks rebound a day after plunge
Associated Press
Energy stocks led a broad rally in U.S. stocks Thursday, giving the market its biggest gain in more than a month.
A recovery in crude-oil prices helped put stocks into rebound mode a day after the market had its worst drop since September. Investors also welcomed some encouraging company earnings.
Chevron and Exxon Mobil each jumped about 5 percent, by far the biggest gains in the Dow Jones industrial average. It was a reprieve for the energy sector, which has been battered in recent months as crude-oil prices plunged. U.S. crude oil rose 2.4 percent Thursday.
“That all led to a little bit of confidence in the markets and some buyers coming in,” said Sean Lynch, co-head of global equity for Wells Fargo Investment Institute. “It’s been pretty ugly so far, year-to-date, and it’s good to see the gains, but we’ll see if they follow through [today.]”
The Dow rose 227.64 points, or 1.4 percent, to 16,379.05. The average had risen as much as 330 points earlier. The Standard & Poor’s 500 index gained 31.56 points, or 1.7 percent, to 1,921.84. The Nasdaq composite added 88.93 points, or 2 percent, to 4,615.
It was the best gain for each index since Dec. 4.
Even with the big rebound day, the three major U.S. stock indexes remain down for the year. The Dow and S&P 500 are both off about 6 percent, while the Nasdaq is down nearly 8 percent.
It’s been a rocky start to the year for stocks, reflecting investor worries about the slowdown in China, plunging oil prices and the implications those trends may have for U.S. corporations. The first eight trading days of 2016 represent the worst start to a year in the history of both the S&P 500 and the Dow.