The price of U.S. oil rose more than 6 percent after a group of oil-importing countries said energy stockpiles will grow at a slower pace. Metals companies Alcoa and Freeport-McMoRan climbed as investors hoped a stronger global economy will mean greater demand for their products. Amazon led a rally in consumer stocks.
The& Dow& Jones industrial average gained 228.67 points, or 1.4 percent, to 16,620.66. The Standard & Poor’s 500 index climbed 27.72 points, or 1.5 percent, to 1,945.50. The Nasdaq composite index added 66.18 points, or 1.5 percent, to 4,570.61.
This year stocks have moved up and down with the price of oil, which means they have mostly gone down. On Monday the International Energy Agency that it doesn’t expect oil prices to recover significantly until 2017, but it expects slower growth in global supplies.
Benchmark U.S. crude climbed $1.84, or 6.2 percent, to $31.48 a barrel in New York. Brent crude, which is used to price international oils, rose $1.68, or 5.1 percent, to $34.69 a barrel in London. The price of wholesale gasoline increased almost 6 percent and heating oil rose 3 percent.
Consumer stocks made large gains. The biggest went to e-commerce company Amazon, which said Monday that shoppers who are not members of its Prime loyalty program will have to make larger orders to get free shipping. The move could push more shoppers to sign up for a $99-a-year Prime membership. Its stock climbed $24.60, or 4.6 percent, to $559.50.
Starbucks, too, rose after making changes to its customer rewards program. The coffee chain said shoppers who spend less money won’t get as many freebies. Its stock added $1.20, or 2.1 percent, to $58.87.
Lumber Liquidators plunged $2.81, or 19.8 percent, to $11.40 after the U.S. government said people exposed to some types of its laminate flooring were three times as likely to get cancer as it had originally predicted.
The pound fell 1.5 percent as London Mayor Boris Johnson said he believes Britain should leave the European Union. Prime Minister David Cameron wants to keep the country within the 28-nation bloc, and voters will hold a referendum in June.
Analysts say the “stay” campaign is still likely to win, but the prospect of prolonged uncertainty is unnerving some investors.
Overseas, Tokyo’s Nikkei 225 and Hong Kong’s Hang Send both rose 0.9 percent. Germany’s DAX gained 2 percent and France’s CAC-40 added 1.8 percent. Britain’s FTSE 100 rose 1.5 percent.
Bond prices didn’t move much. The yield on the 10-year Treasury note held steady at 1.75 percent. The euro fell to $1.1026 from $1.1135 late Friday and the dollar rose to 112.83 yen from 112.56 yen.
Gold fell $20.70 to $1,210.10 an ounce, silver lost 19 cents to $15.18 an ounce and copper rose four cents to $2.12 a pound.
In other energy trading, wholesale gasoline rose 4 cents to $1 a gallon and heating oil added 3 cents to $1.06 a gallon. Natural gas inched up 2 cents to $1.82 per 1,000 cubic feet.