(Reuters) – A rally in battered energy shares led U.S. stocks to rebound yesterday, while financials rose after upbeat results from JPMorgan Chase & Co.
The S&P 500 registered its biggest daily percentage gain since Dec. 4 and ended back above 1,900 in the heaviest volume day so far this year.
Though the market finished off its highs for the day, analysts said some investors see a bottom in energy shares, which were among the most heavily sold shares in the market’s rout that began at the start of the year.
The S&P energy sector shot up 4.5 percent, its best percentage gain since late August.
Shares of Exxon Mobil surged 4.6 percent, also the biggest percentage gain since late August, to $79.12, while Chevron jumped 5.1 percent to $85.47, among the biggest boosts to the Dow and the S&P 500. U.S. and Brent oil prices ended more than 2 percent higher. The SPDR Energy Select Sector exchange-traded fund rose 4.3 percent.
Also rebounding were biotechs, with the Nasdaq Biotech Index ending up 4.0 percent.
“You have had people trying to pick a bottom both in the energy commodity itself and energy shares a few times in this long slide down and again today,” said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.
He said exchange-traded funds may have bought energy stocks, forcing short-sellers to cover positions.
The Dow Jones industrial average closed up 227.64 points, or 1.41 percent, to 16,379.05, the S&P 500 gained 31.56 points, or 1.67 percent, to 1,921.84 and the Nasdaq Composite ended up 88.94 points, or 1.97 percent, to 4,615.00.
