Energy stocks boost the rally
U.S. stocks closed higher on Thursday, 13 June 2019 following back-to-back losses for major indexes, as investors monitored a sharp jump in oil futures after two oil tankers were damaged in suspected attacks off the coast of Iran.
The Dow Jones Industrial Average rose 101.94 points, or 0.4%, to 26,106.77, and the S&P 500 index added 11.80 points, or 0.4%, to 2,891.64. The Nasdaq Composite Index gained 44.41 points, or 0.6%, to 7,837.13.
Indices were lifted by shares of energy companies as oil prices rose after two oil tankers were attacked off the coast of Iran. A swarm of buyers in the last few minutes of action boosted the benchmark index from near session lows to close out the session on a high note.
Oil futures surged after reports about attacks on two oil tankers in the Gulf of Oman, near the Strait of Hormuz, with the U.S. Navy rushing to assist the vessels. Brent crude and U.S. benchmark West Texas Intermediate crude both jumped sharply.
Among economic data expected for the day, the number of Americans applying for jobless benefits in the week ended June 8 rose to 222,000 from 219,000 a week earlier. Market had forecast 218,000.
Separately, the cost of imported goods fell 0.3% last month, the Labor Department said Thursday.
From a broader perspective, the stock market has traded sideways over the last four sessions as it waits for further policy guidance from the Fed and for any updates on the U.S.-China trade front. On a related note, China's Vice Premier Liu He called for more stimulus measures to support the Chinese economy.
Demand for U.S. Treasuries persisted amid high expectations for the Fed to cut rates, and Treasuries advanced to session highs during the day. The 2-yr yield declined seven basis points to 1.82%, and the 10-yr yield declined four basis points to 2.09%. The U.S. Dollar Index increased 0.1% to 97.06.
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