US stocks rose Wednesday, rebounding from two consecutive days of losses, as the price of oil stabilized from recent historic lows.
US West Texas Intermediate crude for June delivery jumped as much as 23% on Wednesday, to $14.19 a barrel. On Monday, WTI May contracts closed at a record low of -$37.63 a barrel, the first time oil prices had ever fallen into negative territory. A supply glut amid the coronavirus pandemic cratered demand, sending prices lower.
Here’s where major US indexes traded shortly after the market open at 9:30 a.m. E.T. on Wednesday:
S&P 500: 2,787.41, up 1.9%
Dow Jones industrial average: 23,429.85, up 1.8% (411 points)
Nasdaq composite: 8,420.27, up 1.9%
Investors are also looking to first-quarter earnings results from major technology companies and more this week. Snap surged more than 20% in early trading after reporting strong revenue and subscriber growth in its earnings release Tuesday.
Traders also weighed positive signs that small businesses will soon get more coronavirus relief. On Tuesday, the Senate passed a $484 billion legislative package that would add $310 billion to the Paycheck Protection Program after funds were exhausted last week. Next, the bill goes to the House for a vote.
The Trump administration is also considering offering federal stimulus funds to beleaguered US energy companies in exchange for government stakes or ownership in either the firms or crude reserves, the Wall Street Journal reported Tuesday. The plan is one of many being weighed to help US energy companies amid the historic drop in oil prices.
