Oil Rise Boosts Energy Shares Trade Higher

Gains in energy shares helped Wall Street’s main indexes snap two days of weakness and trade higher on Thursday, with hopes of an interest rate cut adding to the upbeat sentiment.

Crude prices rose as much as 4%, a day after hitting five-month lows, after a suspected attack on two tankers in the Gulf of Oman near Iran and the Strait of Hormuz, through which a fifth of global oil consumption passes.



The S&P energy index jumped 1.21%, the most among the 11 major sectors. Shares of oil majors Exxon Mobil Corp and Chevron Corp rose 1% each.

“There is a positive correlation between stock markets and oil prices which is the day’s catalyst,” Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.


West Texas Intermediate graph

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.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza