Wall Street shares ended strongly higher on Wednesday, the S&P 500 index recording its biggest two-day jump since its 2016 nadir in mid-February.
As Brexit worries faded, investors turned their sights back to oil prices, which raced higher, and at one point touched $50 a barrel in late session.
The US oil benchmark West Texas Intermediate ended up 3.3% at $49.43.
The S&P 500 index closed up 1.7% at 2,070 – just shy of its pre-Brexit level of 2,113.
The S&P Midcap 400 also had a solid run higher and closed up 1.8% at 1,468, while the S&P Smallcap 600 was 2.1% higher at 693.
The best gains were from the wider small-cap Russell 2000, up 2.2% at 1,131.
Midsession
Wall Street shares extended gains at midsession on Wednesday, after an upbeat close the previous session as Brexit fears abated while oil prices touched $49 for the first time since June 23.
As London stocks closed above the levels they traded at during the European Union referendum polling day, the US bellwether S&P 500 index was up 1.4% at 2,065 – still around 35 points off the levels it traded at during Thursday’s polling day.
The S&P Midcap 400 index was up 1.4% at 1,462 and led by Privatebancorp Inc (NASDAQ:PVTB), up 23.2% at $44.26 after Canadian bank CIBC (TSE:CM) said it was buying the operator to gain more access to the US banking sector.
The S&P Smallcap 600 was up 1.7% at 691 and led by Basic Energy Services (NYSE:BAS), up 15.7% at $1.70.
The oil price continued to gain strongly for a second successive day. The West Texas Intermediate was up 2.6% at $49.10 – the first time it had reached these levels since June 23, the day of the UK referendum.
Open
Wall Street shares are poised to start on the up putting U.S. stocks on pace for a second positive day in succession.
On Tuesday, the Dow Jones lifted 270 points, or 1.6%, to 17,409 and the broader-based S&P 500 climbed 35 points, or 1.8%, to 2,036.
The Russell 2000 was also higher, gaining 27 points, or 1.6%, to 1,107, while the tech heavy Nasdaq rose 97 points, or 2.2%, to 4,691.
In futures today in the US, the Dow is seen 115 points higher; the Nasdaq up 27 and the S&P500 around 13 points to the good.
Worries over the Britain’s exit from the European Union are being deferred by the market, stabilising sterling and giving investor confidence.
In Europe, the FTSE 100 was powering north at lunch, as traders brushed fears aside as London markets and Euro stocks went higher.
The index of UK leading shares was up 2.18% or over 138 points at lunch, with traders looking for bargains as share prices around the world have tumbled.
Also boosting the markets was the oil price, which rose on Wednesday as slower production could lead to a supply fall.
Both the Brent crude and West Texas Intermediate price were up almost 1% to US$48.94 and US$48.29 respectively.