By Shreyashi Sanyal
(Reuters) – United States stocks continued their climb on Thursday after two days of declines as energy shares gained on higher oil prices following suspicious attacks on two tankers in the Gulf of Oman.
Crude prices rose as much as 4%, a day after hitting five-month lows, as the Iranian and Strait of Hormuz attacks, through which a fifth of global oil consumption passes, stoked fears of a faceoff between Iran and The United States.
The S & P Energy Index jumped 1
"Chevron and Exxon Mobil were two of the session's best performers, as the markets continue to digest news of oil tanker blasts in the Gulf of Oman," said Connor Campbell, financial analyst at Spreadex in London.
The biggest boost to the communication services sector, which rose 0.74%. Walt Disney (NYSE 🙂 Co shares added 2.14%, the largest contributor to the sector, after Morgan Stanley (NYSE 🙂 raised its forecast for Disney Plus subscriber growth.
Wall Street's main indexes have had a strong start to the month on hopes that the Federal Reserve will act to counter a slowing global economy due to the escalating trade war with China. The benchmark S & P 500 Index has risen 5% so far in June.
U.S. consumer prices data on Wednesday pointed to a moderate rise in inflation, adding to the expectations of a rate cut as early as July. The Fed policymakers are set to meet on June 18-19 and markets have been priced in at least three rate cuts in 2019.
But on the trade front, there were doubts about any improvement in what President Donald Trump called "testy" trade relations with China in the run-up to the G20 summit later this month.
"The sentiment around trade talks is generally more dire. I think you're going to see the Fed being very tempered on cut rates and we will see these muted gains as we measure how severe the economic downturn is, "said Matt Lloyd, chief investment officer at Advisors Asset Management in Monument, Colorado
At 11:17 am ET's was up 23.22 points, or 0.09%, at 26,028.05, the S & P 500 was up 4.64 points, or 0.16%, at 2,884.48 and was up 27.20 points, or 0.35%, at 7,819.92
Also boosting the indexes were gains in marquee companies Facebook Inc (NASDAQ :), Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ :), Microsoft Corp (NASDAQ 🙂 and Alphabet (NASDAQ: ) Inc., which rose between 0.2% and 1.1%.
Twitter Inc (NYSE 🙂 shares fell 3.79%, the most among S & P 500 companies, after brokerage Moffett Nathanson said it expects the social media company's costs to rise and revenue growth to slow.
The S & P index recorded 25 new 52-week highs and one new low, while the S & P index recorded a new 2-week highs and a 1.99-to-1 ratio on the Nasdaq. the Nasdaq recorded 40 new highs and 49 new lows