Up, up, and away. U.S. stocks shot up sharply on Tuesday amid a wave of upbeat news. Lawmakers have reportedly announced a tentative border security deal that would avert another government shutdown. President Donald Trump signaled a potential extension to the trade-talk deadline before tariffs are raised again. Oil surged on a report that Saudi Arabia might cut production further in March. In today’s After the Bell, we…
look into the jump in crude price; wonder how much concession China is willing to make in the trade talk; and watch fund managers’ sentiment and allocation in the latest survey.
Good News Comes in Threes
Stocks surged on Tuesday as investors embrace optimism on multiple fronts. The Dow Jones Industrial Average rose 372.65 points, or 1.49%, to close at 25,425.76. The S&P 500 added 34.93 points, or 1.29%, to end at 2744.73, and the Nasdaq Composite gained 106.71 points, or 1.46%, to end at 7414.62.
Saudi Arabia, the Organization of the Petroleum Exporting Countries’ de-facto leader, said on Tuesday that the kingdom plans to drop its March crude output by more than half a million barrels per day on top of its initial pledge.
OPEC countries and allies have already agreed on voluntary production cuts for 2019, reducing output by almost 800,000 barrels per day in January. The move has tightened the global oil supply and bolstered crude price in the face of rising output in non-member countries such as the U.S.
Reacting to Saudi’s further cuts, Brent crude futures gained as much as 2.9% to $63.32 a barrel during Tuesday’s trading, while the U.S. West Texas Intermediate (WTI) crude oil futures rose 1.2%, to $54.04