NEW YORK, April 18 (Bernama-Xinhua) -- United States (US) stocks finished higher on Friday, propelled by a sharp drop in global oil prices and easing geopolitical tensions, with the S&P 500 crossing the 7,100 milestone for the first time, reported Xinhua.
The Dow Jones Industrial Average rose 1.79 per cent to 49,447.43. The S&P 500 added 1.2 per cent to 7,126.06. The Nasdaq Composite Index increased by 1.52 per cent to 24,468.48, securing its longest positive streak since 1992.
Nine of the 11 primary S&P 500 sectors ended in the green. The consumer discretionary and industrials sectors led the gainers, advancing 1.97 per cent and 1.82 per cent, respectively.
Meanwhile, the energy and utilities sectors were the only laggards, declining 2.94 per cent and 0.42 per cent.
Market sentiment received a major boost following an announcement regarding maritime security in West Asia.
The reopening of the Strait of Hormuz triggered a massive sell-off in energy markets.
West Texas Intermediate crude for May delivery plunged US$10.84, or 11.45 per cent, to settle at US$83.85 a barrel on the New York Mercantile Exchange.
Similarly, Brent crude for June delivery decreased by US$9.01, or 9.07 per cent, to close at US$90.38 a barrel on the London ICE Futures Exchange.
The swift transition from oversold to overbought in major US indexes also raised concerns about the sustainability of the rally.
"The equity market's rapid 12-day transition from oversold to overbought masks a precarious macro reality, especially given the ongoing threat of crude oil above US$90/barrel," said Craig Johnson, chief market technician of Piper Sandler.
The sudden plunge in fuel costs spurred a strong rebound in equities highly vulnerable to supply chain and travel disruptions.
Shares of major cruise operators and airlines advanced significantly, highlighted by a 7.34 per cent jump for Royal Caribbean and a 2.06 per cent gain for Boeing.
Other major equities such as Amazon and Airbnb also moved higher during the session.
In other corporate earnings news, Netflix experienced a sharp decline in after-hours trading on Thursday following the release of its quarterly operating results.
Despite reporting better-than-expected first-quarter results, the streaming giant's stock dropped 9.72 per cent on Friday as investors shifted their focus toward a weaker-than-anticipated outlook for the upcoming second quarter.
-- BERNAMA-XINHUA
