Investing.com -- U.S. stocks moved broadly higher on Wednesday, halting a three-day losing streak, as the major indices received a boost from surging oil prices following an unexpected draw in U.S. crude inventories last week.
On Wednesday morning, the U.S. Energy Information Administration (EIA) reported that crude inventories nationwide decreased by 4.94 million barrels for the week ending on April 1, falling sharply below consensus estimates of a build of 2.85 million barrels. As U.S. crude stockpiles remain near all-time record-highs, any considerable draws are viewed as extremely bullish for persistently low oil prices. Since rallying from 13-year lows in mid-February, oil futures have traded in near-lockstep with U.S. equities.
The Dow Jones Industrial Average added 112.73 or 0.64% to 17,716.05, while the NASDAQ Composite index rose 76.79 or 1.59% to 4,920.72, each ending mild losing skids. With the sharp gains, the NASDAQ soared to its highest level of the 2016 calendar year. Previously, the NASDAQ lagged behind its counterparts, which hit yearly-highs late last month. Both indices were largely unaffected by the release of the Federal Open Market Committee's minutes from its March meeting on Wednesday afternoon. The minutes showed a fractured Fed, divided on the timing of their next interest rate hike. Several members expressed a desire to rate short-term interest rates this month, while others wanted to remain cautious amid heightened financial risks abroad.
The S&P 500 Composite index, meanwhile, gained 21.49 or 1.05% to 2,066.66, as eight of 10 sectors closed in the green. Stocks in the Health Care and Energy industries led, each gaining more than 2% on the session. Stocks in the Telecom and Utilities sectors lagged.
The top performer on the Dow was Pfizer Inc (NYSE:PFE), which gained 1.57 or 5.01% to 32.93 after the major pharmaceutical company officially terminated a proposed $160 billion acquisition of Allergan Plc (NYSE:AGN). It came two days after the U.S. Treasury Department approved new regulations aimed at curbing so-called tax inversion strategies by companies that relocate outside of the U.S. in order to capitalize on lower corporate tax rates. The worst performer was VZ Holding AG (SIX:VZN), which fell 0.57 or 1.05% to 53.52.
The top performer on the NASDAQ was Incyte Corporation (NASDAQ:INCY), which surged 8.52 or 11.62% to 81.87. Stocks in the pharmaceutical sector soared on Wednesday, due primarily to speculation that Allergan could seek another partner for a comprehensive merger, following Pfizer's failed bid. Besides Incyte, Vertex Pharmaceuticals Inc (NASDAQ:VRTX), Biomarin Pharmaceutical Inc (NASDAQ:BMRN), Celgene Corporation (NASDAQ:CELG), Mylan (NASDAQ:MYL) and Illumina Inc (NASDAQ:ILMN) all jumped by more than 5%. The worst performer was Fastenal Company (NASDAQ:FAST), which fell slightly by 0.27 or 0.57% to 47.11.
The top performer on the S&P 500 was Baker Hughes Incorporated (NYSE:BHI), which rose sharply by 3.47 or 8.82% to 42.83. Earlier on Wednesday, the U.S. Department of Justice filed a lawsuit against Baker Hughes and Halliburton Company (NYSE:HAL) to block a pending $34.6 billion merger. Many analysts concluded, though, that the rally was driven more by fundamentals after oil prices bounced off 1-month lows by surging more than 5% on the session. The worst performer was Harley-Davidson Inc (NYSE:HOG), which plunged 3.50 or 7.02% to 46.34. Shares in Harley-Davidson slid on Wednesday after an industry report projected lower shipment and revenue projections for the motorcycle company in March.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,307-767 margin.