US Stocks Rises Driven by Higher Oil Prices

U.S. stocks rose on Wednesday, with shares of energy companies getting a boost from surging oil prices after President Donald Trump decided to pull the United States out of a nuclear deal with Iran.

The S&P energy index .SPNY rose 2.2 percent as oil prices hit their highest levels since late 2014 after Trump announced the “highest level” of sanctions against the OPEC member.

West Texas Intermediate graph

The energy index has risen more than 10 percent in the quarter, far outperforming the other major S&P sectors.

“While (energy sector) is providing near-term support for U.S. indexes, I wonder whether it will help in the longer-term, with the decision potentially increasing geopolitical risk,” Craig Erlam, senior market analyst at OANDA in London, wrote in a note.

via Reuters