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Monday, March 18, 2024
March 18, 2024

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Energy companies lead as stocks rise

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NEW YORK — U.S. stocks climbed Wednesday as investors continued to recover some confidence in the health of the global economy. That sent oil prices higher and gave energy companies a boost, while materials companies also climbed higher.

In Europe, a round of new rescue loans for Greece was unfrozen, eliminating the risk the country will default on its debts in the next few months. A survey of business sentiment in Germany, the largest economy in Europe, rose more than expected. European stock indexes rose and the U.S. market followed them. Expecting stronger demand for fuel and materials used in industry and construction, investors bought stock in energy and mining and chemicals companies. U.S. stocks had jumped Tuesday after a strong report on home sales.

Investors “feel confident that perhaps we’re seeing a stabilization of growth overseas,” said Quincy Krosby, market strategist at Prudential Financial. “Here in the U.S. the economy appears to be pulling out of the first quarter slump.”

The Dow Jones industrial average advanced 145.46 points, or 0.8 percent, to 17,851.51. The Standard & Poor’s 500 index rose 14.48 points, or 0.7 percent, to 2,090.54. The Nasdaq composite index added 33.84 points, or 0.7 percent, to 4,894.89.

Already at their highest levels since October, oil prices ticked higher after the U.S. government said fuel stockpiles decreased last week. Benchmark U.S. crude gained 94 cents, or 1.9 percent, to $49.56 a barrel in New York. Brent crude, used to price international oils, rose $1.13, or 2.3 percent, to $49.74 a barrel in London. That sent energy companies higher. Chevron added $1.58, or 1.6 percent, to $101.77 and Schlumberger rose $2.29, or 3 percent, to $77.91.

German conglomerate Bayer said it’s committed to completing its acquisition of Monsanto, and the seed company rose $2.38, or 2.2 percent, to $111.68. Monsanto rejected an offer from Bayer worth $62 billion, or $122 per share, but said Tuesday that it’s open to talks.

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