U.S. stocks jumped Tuesday as the price of oil made another abrupt reversal, this time rising almost 4 percent after falling sharply the day before.
Energy stocks climbed along with the price of oil, and Chevron and Exxon Mobil made major gains. Strong fourth-quarter results from beleaguered wireless provider Sprint gave telecom stocks a boost.
Quarterly earnings also sent several stocks higher, including Post-it Notes maker 3M; Procter & Gamble, which makes Crest toothpaste; and luxury handbag maker Coach.
The Dow Jones industrial average jumped 282.01 points, or 1.78 percent, to 16,167.23. The Standard & Poor’s 500 index rose 26.55 points, or 1.4 percent, to 1,903.63. The Nasdaq composite index added 49.18 points, or 1.1 percent, to 4,567.67.
Energy stocks gained ground as the price of U.S. crude rose $1.11, or 3.7 percent, to close at $31.45 a barrel in New York. It fell almost 6 percent Monday. Brent crude, a benchmark for international oils, rose $1.30, or 4.3 percent, to $31.80 a barrel in London. Despite the rebound, U.S. crude is down almost 18 percent this month.
Exxon Mobil picked up $2.72, or 3.7 percent, to $76.70, and Chevron rose $3.23, or 4 percent, to $84.12.
The Dow had its best day since early December. Many of the companies making the biggest gains, including Exxon, Chevron and 3M, are Dow components. The Nasdaq made smaller gains because tech stocks didn’t rise as much as the broader market.
While the market made broad gains and undid most of Monday’s losses, it’s still down substantially this year, and there are signs investors have big worries about the global economy.
The yield on the 10-year Treasury note slipped to 2 percent from 2.01 percent and the yield on the two-year Treasury note dipped to 0.84 percent from 0.86 percent. In the last week, the yields on those two bonds have gotten closer than they’ve been since June 2008, a sign that investors are concerned about economic growth.
“Fear is the biggest driver,” said Guy Le Bas, a strategist for Janney Capital. LeBas said investors are also anticipating weaker inflation and think the Federal Reserve will be more cautious about raising interest rates because the market has experienced so much turmoil this month.
