A big drag on the economy has suddenly given the stock market a huge shot in the arm.
After getting hammered for weeks, stock markets have just posted their first weekly gains in a month thanks to a surprising source: some sudden strength in oil.
Oil was back above $32 a barrel, boosting the U.S. stock market after steep losses in recent weeks, according to a Wall Street Journal report.
Energy producers and some technology companies posted the biggest gains, moving the Dow Jones Industrial Average up 210.83 points, a 1.3 percent rise on Friday. The S&P 500, meanwhile, did even better, jumping 2 percent to close at 1906.90. The NASDAQ outperformed the all, climbing 2.7 percent to 4591.18.
These rises are tied to crude prices jumping 9 percent to $32.19 per barrel, bad news for drives but good news for the world economy that has been struggling ever since oil began its plunge.
The stock market has struggled in the wake of the problems with the oil market, as well as concerns about whether China’s economy is slowing down and how that will affect U.S. growth.
The Dow had some bad days recently, including on Wednesday when it plunged 550 points before regaining some of it, ending the day down 249 points. It has risen 2.1 percent since then, and the Dow ended the week up 0.7 percent.
It’s an encouraging sign for the stock market, which has had a worrying start to the year ever since a strong 2015, which saw the Federal Reserve finally move up interest rates from 0 percent to slow down inflation.