Investing.com -- U.S. stocks rose sharply on Wednesday, completing their first 3-day rally of 2016, as the major indices were bolstered by a 5% spike in oil prices on a rare winning session for the slumping crude market.
On the crude futures market, both the U.S. and international benchmark increased by more than $1.50 a barrel, after Iran oil minister Bijan Zanganeh said he supported a deal from four major producers to freeze output in order to stabilize tumbling prices. It came one day after the nations – Saudi Arabia, Russia, Venezuela and Qatar – agreed in principle on an accord in Qatar that would cap their production at levels reached in January. While Zanganeh told reporters on Wednesday that Iran was supportive of the first OPEC-Non OPEC oil deal in 15 years, he still stopped short of providing any assurance that his nation would freeze its own production.
Nevertheless, WTI crude closed above $30 a barrel for just the third time in the last 10 sessions, as U.S. crude futures attempt to move clear of 13-year lows hit last week. Over the last 15 months, oil prices have plunged more than 65%, amid a glut of oversupply on global markets, weighing on energy stocks worldwide.
The Dow Jones Industrial Average gained 257.42 or 1.59% to 16,453.83, while moving positive for the month of February. Since last Thursday, the Dow has soared more than 900 points amid one of the largest short squeezes in decades. The S&P 500 Composite index, meanwhile, jumped 31.24 or 1.65% to 1,926.82, as nine of 10 sectors closed in the green. Stocks in the Energy, Technology and Basic Materials industries led, each gaining more than 2%. With the sharp gains, the S&P 500 closed up by more than 1% for the third consecutive session, accomplishing a feat that last occurred in October, 2011.
The NASDAQ Composite index, the session's overperformer, added 98.11 or 2.21% to 4,534.07. Over the last four sessions, the NASDAQ has gained more than 315 points or 7%.
Chevron Corporation (N:CVX), the top performer on the Dow, was one of the top beneficiaries of the oil rally, after adding 3.50 or 4.13% to close at 88.31. Previously, shares in the oil giant had been down more than 25% over the last year. The worst performer was Pfizer Inc (N:PFE), which lost 0.18 or 0.60% to 29.63. A day earlier, the pharmaceutical company agreed to pay a $784.6 million fine to settle a Medicaid rebate claim.
The biggest gainer on the NASDAQ was Priceline.com Incorporated (O:PCLN), which jumped nearly 125 points or 11.24% to 1,235.50. Earlier, the vacation-booking website topped analysts' expectations with its fourth-quarter earnings and offered strong forward guidance, due primarily to encouraging forecasts with its room nights bookings metric. The worst performer was Cerner Corporation (O:CERN), which fell 2.65 or 4.28 to 52.81, even after the health care information technology supplier narrowly beat analysts' forecasts with its quarterly results on Tuesday after the close.
The top performer on the S&P was Garmin Ltd (O:GRMN), which surged 5.83 or 16.55% to 41.06, after topping analysts' forecasts with its fourth quarter earnings, on the back of stellar demand for its fitness and aviation products. Cerner was also the worst performer on the S&P 500, just below Devon Energy Corporation (N:DVN), which fell 0.93 or 4.37% to 20.33. The sell-off came in response to news that the Oklahoma City Oil & Gas company plans to slash its dividend and cut 20% of its workforce as a part of a widespread cost-cutting initiative.
Stocks were relatively unchanged after the minutes from the Federal Reserve's January meeting did little to convince investors that the U.S. central bank will accelerate its path of tightening this year.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,557-520 margin.