Stock market ignores 10-year yield at 3% to surge to session peak as oil rises to $71/bbl, in late-day action
The Dow Jones Industrial Average jumped by about 200 points and the stock market gathered steam to hit session highs as U.S. oil soared above $71 a barrel, boosting energy-related shares. The Dow was up 203 points, or 0.8%, at 24,565, at last check, with gains from shares of Exxon Mobil Corp. surging 2.6%, helping to lift the blue-chip gauge. The S&P 500 index rallied by more than 1% at 2,699, with the energy sector, as measured by the exchange-traded Energy Select Sector SPDR ETF , jumping 2.4%, representing the best performer among the broad-market index’s 11 sectors. Meanwhile, the technology-laden Nasdaq Composite Index advanced by 1% at 7,339. All three equity gauges were enjoying their best gains of the day, even as the 10-year Treasury yielded about 3%, with rising yields having previously created some friction between appetite for bonds and stocks, perceived as riskier by comparison. Previous climbs to 3% have rattled investor nerves as they see it signals a rise in borrowing costs for major corporations. Wednesday’s mostly was underpinned by President Donald Trump’s decision on Tuesday to nix the Iran nuclear pact, which have jolted oil and energy shares higher. An expectation of disruptions in the energy-supply chain has pushed West Texas Intermediate crude oil trading on the New York Mercantile Exchange above $71 a barrel, its highest level since late November of 2014, according to FactSet data.