Stocks Go High for Energy and Financial Sectors

By kleyraustria

Oct 06, 2016 06:00 AM EDT

Recent reports and stock release shows that major U.S. stock indexes gained on Wednesday, increased by financial shares while encouraging economic data and by the energy sector as oil prices surged to June highs. United States Treasury earnings also rose after data illustrates that U.S. services sector activity rebounded to an 11-month high in September. This is somehow an encouraging sign for economic growth.

To know more about the remarkable raise performed by the enery and financial sectors, her is a more depth report about the figures; the Dow Jones industrial average rose 112.58 points, or 0.62 percent, to 18,281.03. The S&P 500 gained 9.24 points, or 0.43 percent, to 2,159.73 and the Nasdaq Composite added 26.36 points, or 0.5 percent, to 5,316.02. Notably, U.S. stocks had been pressured this week by concerns over Britain's exit from the European Union and expectations of a Federal Reserve interest rate increase in the coming months.

World traders eyes a 60-percent opportunity that Fed will hike at its December meeting. This is according to the CME FedWatch website. Relative thereto, financial shares, which tend to benefit in a rising rate environment, climbed 1.5 percent, while the energy sector gained 1.4 percent.

Likewise, oil prices rose to their highest since June after the fifth unexpected weekly drawdown in U.S. crude inventories added to support on hopes that major producers will agree to cut output next month. The U.S. Energy Information Administration (EIA) explained that crude stockpiles is down in 3 million barrels last week, opposite of forecasts of analysts polled by Reuters for a build of 2.6 million barrels.

The dollar was little changed against a basket of currencies as the encouraging services sector data offset a weaker-than-expected report on private-sector job growth. Sterling rose 0.2 percent against the dollar, after dipping below $1.27 and hitting a three-decade low against the greenback during the session amid worries about Britain's EU exit.

It can be reflected that the drastic and major turns in the US stocks are really affecting not only the energy and financial sectors but also the others. Thus, change is really inevitable.


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