Equities traded higher on Monday, led by energy stocks, as oil prices rose on renewed optimism that OPEC was closing in on a deal to cut production.
"I don't know if it will happen, but the market certainly hopes that it will," said Robert Pavlik, chief market strategist at Boston Private Wealth, referring to a possible OPEC deal.
The S&P 500 topped its all-time intraday high of 2,193.81 during midday trade.
The energy sector traded 2 percent higher to lead all sectors higher.
The Dow Jones industrial average rose 74 points to hit a record high, with Apple and IBM contributing the most gains. The Nasdaq composite advanced 0.77 percent, hitting a new record high.
The Russell 2000 and the S&P Mid Cap 400 indexes, which track small and mid cap stocks, respectively, also hit record highs.
"I think oil, and commodities in general, are leading the way for stocks," said Peter Cardillo, chief market economist at First Standard Financial. He also said that crude prices received a boost from a weaker dollar. 1
U.S. crude for December delivery traded 3.92 percent higher at $47.48 per barrel.
That said, Randy Frederick, vice president of trading and derivatives at Charles Schwab, said he expects oil prices to hold in a range roughly between $40 and $50 per barrel. "We've got high supply and slow-growing demand," he said. "Any deal between OPEC would be shaky, as we've seen." 1
Gold prices ended the U.S. day session slightly higher Monday, on mild short covering in the futures market and a bit of bargain hunting in the cash market, following recent selling pressure that saw prices hit a nine-month low last Friday. However, the safe-haven metal was down from the day’s best levels as the U.S. stock market rallied, to suggest keener risk appetite remains in the marketplace. 2
Gold $ 1212
HUI + 1.8%
AUD Gold $1646
