NEW YORK—A jump in oil prices helped pull U.S. stocks to record highs Monday as investors continue to hope for a cut in oil production that could help prices go higher. The start of the week once again brought several corporate deals, with companies in the energy and technology industries making big moves.
The price of oil rose about 4 percent as investors hope the countries in OPEC, which collectively produce more than a third of the world’s oil, will soon finalize a deal that would lower oil production and help support prices. The gains were widespread, with technology, basic materials and utility companies all moving higher.
Stocks reached all-time highs over the summer and have built on those gains since the election. On Monday the Dow Jones industrial average, Standard & Poor’s 500, and Nasdaq composite all set records. So did the Russell 2000, an index of smaller companies, and the S&P’s small- and mid-size company indexes. The last time all those indexes set records on the same day was Dec. 31, 1999, according to Ryan Detrick, senior market strategist for LPL Financial.
The Dow rose 88.76 points, or 0.5 percent, to 18,956.69. The S&P 500 climbed 16.28 points, or 0.7 percent, to 2,198.18. The Nasdaq composite jumped 47.35 points, or 0.9 percent, to 5,368.86.
Benchmark U.S. crude oil rose to its highest price this month. It gained $1.80, or 3.9 percent, to $47.49 a barrel while Brent crude, the international standard, rose $2.04, or 4.4 percent, to $48.90 a barrel in London. That led to gains for energy companies. Marathon Oil added 86 cents, or 5.5 percent, to $16.48 and Exxon Mobil added $1.21, or 1.4 percent, to $86.49.
OPEC representatives will meet in Vienna on Nov. 30. They have agreed to preliminary terms of a deal that will trim oil production, but the details remain to be determined. Quincy Krosby, market strategist at Prudential Financial, said investors are encouraged by the effort, but she doesn’t think a deal, if one happens, will have much effect on oil prices.
“There’s nothing to suggest the agreement’s going to hold,” she said. “When all is said and done, supply and demand will ultimately dictate the price.”
