US stocks had a rally on Tuesday (15) and the S&P 500 index interrupted a three-day streak of lows.
The move came after a further drop in oil prices and a softer-than-expected reading of producer prices helped ease inflationary fears among investors, with focus shifting to the US central bank’s upcoming monetary policy announcement.
Brent crude was below $100 a barrel after soaring above $139 last week.
The commodity has brought temporary relief to investors who this year have seen equities come under pressure from rising inflation concerns, uncertainty over the Federal Reserve’s monetary policy path and, more recently, the escalation of conflict in Ukraine.
The S&P 500 index closed up 2.14% at 4,262.45 points. The Dow Jones rose 1.82% to 33,544.34 points. The Nasdaq Composite technology index rose 2.92% to 12,948.62 points.
The S&P 500 is down about 2.4% in the previous three sessions and has recently joined the Dow Jones, Nasdaq and Russell 2000 indices in forming a technical pattern called a “death cross” when a short-term moving average crosses below a long-term moving average, which some investors believe signals more near-term weakness.
Of the 11 major S&P sectors, 10 advanced, with technology and consumer discretionary stocks leading, while energy, the only positive sector for the year, saw a daily decline of nearly 4% along with oil prices.
Source: CNN Brasil
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