U.S. stocks rose to halt a three-day slide, as beaten-down energy shares climbed for a second session from their lowest level since September and airlines led transportation companies off a three-month low.
Weakness in energy and industrial shares has helped restrain equities from any meaningful advance since the Standard & Poor’s 500 Index reached a more than three-month high in early November. Airlines boosted industrials today, while Chevron Corp. added 1.9 percent to bolster energy after cutting its 2016 spending plans.
The S&P 500 rose 0.2 percent to 2,052.26 at 4 p.m. in New York, near its average price during the past 50 days after earlier rising as much as 1 percent. The gauge remains on track for its first weekly decline in four.
With the Federal Reserve’s rate-setting meeting less than a week away, the S&P 500’s performance this December is proving an exception to the historical trend for the month — typically the strongest for global equities. An early rally fizzled yesterday as Apple Inc. paced technology-share declines, while renewed worries about the pace of global growth erased all the benchmark index’s 2015 gains.
Fed Chair Janet Yellen has recently signaled the economy is ready for higher borrowing costs. Still, investors are caught between optimism about U.S. growth and concern that a slowdown in China and the consequent tumble in commodities will damp global growth prospects. Oil prices hovered near six-year lows Thursday after OPEC said crude output rose to the highest in more than three years in November.
Source : Bloomberg