Investing.com -- U.S. stocks resumed their recent hot streak on Wednesday, one day after suffering a rare down session, as the major indices continued to move in lockstep with the recent rally in resurgent crude prices.
U.S. crude futures surged more than 4% on the session to eclipse $38 a barrel, remaining near their highest level on the calendar year. It came amid reports that motor gasoline inventories fell by 4.5 million barrels last week, providing indications that record-high U.S. stockpiles could be on the verge of leveling off. Investors also reacted to reports from Reuters that Saudi Arabia could be seeking loans in the range of $6 to $8 billion in an attempt to stave off a budget deficit that reached as high as $100 billion last year. The report could signal that the kingdom may be willing to make added concessions in negotiations with OPEC and Non-OPEC producers on a pact that could help stabilize crude prices at $50 a barrel.
The Dow Jones Industrial Average gained 36.26 or 0.21% to 17,000.36, while the S&P 500 Composite index added 10.00 or 0.51% to 1,989.26, as both indices posted their sixth winning session over the last seven trading days. The NASDAQ Composite index, meanwhile, ticked up 25.55 or 0.55% to 4,674.38, amid a strong performance from semiconductor stocks. On the S&P 500, nine of 10 sectors closed in the green led by stocks in the Energy and Technology industries. Stocks in the Telecommunications sector, the lone industry to close in the red, lagged on Wednesday.
The top performer on the Dow was Chevron Corporation (NYSE:CVX), which gained 4.08 or 4.60% to 92.82 due to the latest rise in oil prices. It has been an unsettling period for Chevron (NYSE:CVX) shareholders after the oil giant announced plans to slash capital expenditures by 25% in 2016. The worst performer was Nike Inc (NYSE:NKE), which fell 1.48 or 2.47% to 58.33. Nike, the world's largest athletic apparel company, continues to deny corruption allegations involving the Kenyan Athletics Foundation.
The biggest gainer on the NASDAQ was Mylan (NASDAQ:MYL), which added 1.80 or 4.02% to 46.55, after the Netherlands-based pharmaceutical company received a wave of upgrades from a number of prominent brokerages a day earlier. The worst performer was Regeneron Pharmaceuticals Inc (NASDAQ:REGN), which lost 20.06 or 5.08% to 374.75, amid a massive sell-off among biotech stocks. Shares in Amgen Inc (NASDAQ:AMGN), Vertex Pharmaceuticals Inc (NASDAQ:VRTX) and Biogen Inc (NASDAQ:BIIB) all lost more than 2% on the session.
The top performer on the S&P 500 was Chesapeake Energy Corporation (NYSE:CHK), which jumped 0.33 or 7.67% to 4.63. Shares in the Oklahoma-based oil & gas company have more than doubled over the last week. Energy and commodity stocks dominated the S&P 500 on Wednesday, as Devon Energy Corporation (NYSE:DVN), Freeport-McMoran Copper & Gold Inc (NYSE:FCX), Newfield Exploration Company (NYSE:NFX) and Tesoro Corporation (NYSE:TSO) all surged by more than 5%. The worst performer was Frontier Communications (NASDAQ:FTR), which plunged 0.48 or 8.50% to 5.17.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 2,160 to 931 margin.