(Reuters) - Energy and bank stocks led the S&P and Dow higher on Friday, though a decline in technology shares capped gains and pushed the Nasdaq slightly lower.
The benchmark Brent crude jumped 1.9 percent to $74.48 a barrel, following three days of declines, after OPEC agreed on Friday to raise production by around 1 million barrels per day from July for the group and its allies, according to a source. [O/R]
Exxon Mobil rose 2.1 percent and Chevron gained 3 percent providing the biggest boost to the S&P 500 and the Dow. The S&P energy index was up 2.9 percent.
A recent rally in oil prices due to an OPEC decision to restrict supply in an effort to drain global inventories, has helped S&P energy be the best performing S&P sector in the last three months.
The OPEC meeting in Vienna comes amid calls to cool down the price of crude and prevent an oil deficit that would hurt the global economy.
“The market wants some sort of positive commentary out of OPEC ... less uncertainty about the OPEC is always a good thing,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
“Above $75 people really start to complain about oil impacting the consumer or companies.”
At 10:08 a.m. EDT the Dow Jones Industrial Average was up 172.96 points, or 0.71 percent, at 24,634.66, the S&P 500 was up 11.78 points, or 0.43 percent, at 2,761.54 and the Nasdaq Composite was down 5.94 points, or 0.08 percent, at 7,707.01.
The gains were broad-based with 10 of the 11 main S&P sectors trading in the positive.
The S&P financial sector was up 0.6 percent as major U.S. banks gained after clearing the Federal Reserve’s first stage of an annual regulatory stress test. ...