The global recession and uncertainty about the future now has traders routinely bypassing what used to be market fundamentals, with the stock and oil markets increasingly taking their cues from one another, an analyst said Thursday.
"What I think we'll see coming up with the oil and stock markets is traders watching to see if demand for oil starts to increase, which is a positive signal to the stock market that the recession is starting to wane," said Mike Zarembski, senior commodities analysts at OptionsExpress.
On Thursday, financial and energy shares led a broad-based move higher as investors bypassed a slew of dismal economic reports on unemployment and the housing market to focus instead on government steps to bolster the nation's banking system.
The Dow Jones Industrial Average (DJI) climbed 123.45 points to 7,394.34. The S&P 500 (SPX) gained 13.55 points to 778.45, while the Nasdaq Composite (RIXF) added 18.26 points to 1,444.23.
On the New York Mercantile Exchange, crude gained $2.43 to $44.93 a barrel.
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