NEW YORK — Stocks returned to record levels Wednesday as a rebound in oil prices boosted energy stocks. The stock market also gained after the completion of midterm elections that saw Republicans take control of the Senate.
The direction of the stock market has been dictated by swings in the price of oil this week. Energy stocks plunged Monday and Tuesday on reports that Saudi Arabia was cutting prices for U.S.-bound crude. On Wednesday, oil rebounded on a smaller-than-expected increase in overall U.S. supplies.
The stock market has returned to record levels after a sharp slump last month. The rebound has been fueled by a combination of rising corporate earnings and evidence that the economy is maintaining its gradual recovery.
“We’re within the midst of a secular bull market right now, and I do believe the general trend right now in the U.S. stock market is going to be upward,” said Kevin Mahn, president and chief investment officer at Hennion & Walsh Asset Management.
The S&P 500 rose 11.47 points, or 0.6 percent, to 2,023.57. That surpassed the previous record of 2,018.05 set Friday. The Dow Jones industrial average gained 100.69 points, or 0.6 percent, to 17,484.53. The index is also at an all-time high. The Nasdaq composite fell 2 points, or less than 0.1 percent, to 4,620.72.
Evaluating data going back to 1946, analysts at S&P Capital IQ found that the stock market had its best returns when a Democratic president was opposed by a unified Republican Congress. In the eight years when that combination was in place, the S&P 500 index gained an average of 15.1 percent.
The worst returns occurred when a Republican president was working with a split Congress. In that scenario, stocks rose an average of just 3.5 percent a year.
Investors also got some encouraging news on hiring Wednesday.
U.S. companies added 230,000 jobs in October, payroll processer ADP said. That’s the most in four months and a sign that businesses are still willing to hire despite signs of slowing growth overseas. The report could indicate a healthy gain in the government’s monthly report on jobs, due Friday.
