The Dow and S&P 500 both closed higher on Monday to kick off April with a 4th straight session of gains, after a group of major global oil nations on Sunday announced surprise production cuts. The Dow Jones Industrial Average DJIA climbed about 326 points, or 1% on Monday, to end near 33,600, according to preliminary FactSet data. The S&P 500 index SPX gained 0.4%, while its energy component outperformed with a 4.9% climb. The Nasdaq Composite Index COMP shed 0.3%. Investors piled into energy stocks after the Organization of the Petroleum Exporting Countries and its allies said Sunday they would in May cut production by more than 1 million barrels a day in an effort to support oil-market stability, including with Saudi Arabia slashing its output by 500,000 barrels a day. May WTI oil future contract CLK23 climbed more than 6% to trade above $80 a barrel, the biggest daily gain in more than a year. The Energy Select Sector SPDR Fund XLE rose 4.6%. The 2-year Treasury yield BX:TMUBMUSD02Y slumped below 4%, while the 10-year Treasury BX:TMUBMUSD10Y rate fell to 3.43%, as traders anticipated that higher oil prices could potentially act as a wretch in the Federal Reserve’s plans to bring inflation down to its 2% annual target.
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