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Wall Street closed higher on Tuesday, driven by a strong performance by energy stocks, fueled by a surge in crude oil prices. All three major stock indexes ended in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 159.36 points to close at 37,545.33. Notably, 21 components of the 30-stock index ended in positive territory, while nine ended in negative zone.
The tech-heavy Nasdaq Composite finished at 15,074.57, rising 0.5% due to the strong performance of the large-cap technology stocks.
The S&P 500 gained 0.4% to finish at 4,774.75, marking the highest intraday level since January 2022. The best performers were the Energy sectors. All 11 broad sectors of the benchmark, ended in positive territory. The Energy Select Sector SPDR (XLF), the Real Estate Select Sector SPDR (XLRE) and the Industrials Select Sector SPDR (XLI) rose 0.8%, 07% and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.3% to 13. A total of 9.99 billion shares were traded on Tuesday, lower than the last 20-session average of 12.56 billion. The S&P 500 posted 50 new 52-week highs and no new lows; the Nasdaq Composite recorded 222 new highs and 48 new lows.
Spike in Crude Oil Prices
Oil prices surged over 2% on Tuesday, reaching the highest level this month. This surge was primarily triggered by attacks on ships in the Red Sea, which raised concerns about disruptions in shipping activities. As a result of these developments Brent crude futures settled at $81.07 per barrel, marking a 2.5% increase while U.S. West Texas Intermediate crude rose by 2.7%, reaching $75.57.
The rally in oil prices can be attributed to tensions in the Middle East, including attacks by rebels on ships and the ongoing violence in Gaza. The Iran-backed Houthi militia claimed responsibility for launching a missile attack on a container ship sailing through the Red Sea.
As a consequence of the situation in the Red Sea region ships are diverting their routes around the horn of Africa resulting in prices and increased risks for trade. The importance of the Red Sea lies in its connection to the Suez Canal, the passageway that facilitates 12% of global trade.
Meanwhile, oil prices received support from expectations of interest rate cuts by the Federal Reserve slated for 2024. Lower interest rates have the potential to stimulate growth and drive-up demand for oil.
Case-Shiller Home Prices increased 0.2% month over month in October for the 10-City Composite. Year over year, prices rose 5.7%. For the 20-City Composite, prices increased 4.9% year over year in October, while it gained 0.1% month over month.
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Stock Market News for Dec 27, 2023
Market News
Wall Street closed higher on Tuesday, driven by a strong performance by energy stocks, fueled by a surge in crude oil prices. All three major stock indexes ended in green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 159.36 points to close at 37,545.33. Notably, 21 components of the 30-stock index ended in positive territory, while nine ended in negative zone.
The tech-heavy Nasdaq Composite finished at 15,074.57, rising 0.5% due to the strong performance of the large-cap technology stocks.
The S&P 500 gained 0.4% to finish at 4,774.75, marking the highest intraday level since January 2022. The best performers were the Energy sectors. All 11 broad sectors of the benchmark, ended in positive territory. The Energy Select Sector SPDR (XLF), the Real Estate Select Sector SPDR (XLRE) and the Industrials Select Sector SPDR (XLI) rose 0.8%, 07% and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.3% to 13. A total of 9.99 billion shares were traded on Tuesday, lower than the last 20-session average of 12.56 billion. The S&P 500 posted 50 new 52-week highs and no new lows; the Nasdaq Composite recorded 222 new highs and 48 new lows.
Spike in Crude Oil Prices
Oil prices surged over 2% on Tuesday, reaching the highest level this month. This surge was primarily triggered by attacks on ships in the Red Sea, which raised concerns about disruptions in shipping activities. As a result of these developments Brent crude futures settled at $81.07 per barrel, marking a 2.5% increase while U.S. West Texas Intermediate crude rose by 2.7%, reaching $75.57.
The rally in oil prices can be attributed to tensions in the Middle East, including attacks by rebels on ships and the ongoing violence in Gaza. The Iran-backed Houthi militia claimed responsibility for launching a missile attack on a container ship sailing through the Red Sea.
As a consequence of the situation in the Red Sea region ships are diverting their routes around the horn of Africa resulting in prices and increased risks for trade. The importance of the Red Sea lies in its connection to the Suez Canal, the passageway that facilitates 12% of global trade.
Meanwhile, oil prices received support from expectations of interest rate cuts by the Federal Reserve slated for 2024. Lower interest rates have the potential to stimulate growth and drive-up demand for oil.
Consequently, shares of APA Corporation (APA - Free Report) and Marathon Oil Corporation (MRO - Free Report) surged 3.7% and 2%, respectively. Each of these currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Case-Shiller Home Prices increased 0.2% month over month in October for the 10-City Composite. Year over year, prices rose 5.7%. For the 20-City Composite, prices increased 4.9% year over year in October, while it gained 0.1% month over month.