U.S. stocks posted solid gains Monday, as a strong rebound in oil prices boosted Wall Street sentiment. The Dow Jones Industrial Average jumped 228.67 points, or 1.40 percent, to 16,620.66. The S&P 500 gained 27.72 points, or 1.45 percent, to 1,945.50. The Nasdaq Composite Index leapt 66.18 points, or 1.47 percent, to 4,570.61.
Oil prices soared Monday, with the U.S. oil surging over 6 percent, as the International Energy Agency said U.S shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd next year. The West Texas Intermediate for March delivery moved up 1.84 U. S. dollars to settle at 31.48 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery climbed 1.68 dollars to close at 34.69 dollars a barrel on the London ICE Futures Exchange.
Also, the market got support following a broadly-based rally in global stock markets. In Asia, Chinese shares regained the 2,900-point mark Monday, following the appointment of a new regulator head Saturday. The benchmark Shanghai Composite Index surged 2.35 percent to close at 2,927.18 points. European equities also ended sharply higher, buoyed by the solid gains in commodity prices. German benchmark DAX index at Frankfurt Stock Exchange surged 1.98 percent, while British benchmark FTSE 100 Index advanced 1.47 percent.
On the economic front, the seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers' Index came in at 51.0 in February, down from 52.2 in January. The latest survey pointed to the weakest overall improvement in business conditions for more than three years.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 5.60 percent to end at 19.38 Monday.
In other markets, the U.S. dollar increased against the British pound and the euro on rising market concerns that Britain may leave the European Union (EU) this summer. In late New York trading, the euro fell to 1.1027 U.S. dollars from 1.1132 dollars in the previous session, while the U.S. dollar bought 112.79 Japanese yen, higher than 112.51 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange fell Monday as U.S. equities and the U.S. dollar showed strength. The most active gold contract for April delivery lost 20.7 dollars, or 1.68 percent, to settle at 1,210.10 dollars per ounce.
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