Lifting of global limits helps boost stocks

Stocks closed broadly higher Tuesday on Wall Street as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge that’s sweeping the global economy.

The S&P 500 rose 0.9 percent, although it lost about half of its early gains in a late-afternoon burst of selling. Technology and health care stocks accounted for much of the gains, which followed a strong showing in overseas markets.

Investors are cautiously optimistic that the gradual reopening of some businesses will begin to turn around the economy.

In California, some retail businesses could begin serving customers again as early as Friday, under some restrictions.

Many European countries also have begun relaxing strict orders meant to slow the spread of the novel coronavirus, while waiting to see if it leads to a resurgence in infections.

In Asia, the first pitches of the South Korean baseball season thwacked into catchers’ mitts, albeit in stadiums with no fans in attendance.

Expectations for stronger demand for oil as more businesses get the green light to open helped drive the price of oil sharply higher, extending its mini-rally after falling to record lows last month.

“It’s investors getting a little bit ahead of themselves,” said Willie Delwiche, investment strategist at Baird. “Maybe, it’s a sense of relief that we’ve made it this far and there’s some sort of a path forward, even if it’s not real clear.”

Delwiche noted that questions remain about at what pace will consumers venture out of their homes and spend money as shuttered businesses reopen.

“That’s the big unknown right now,” he said.

The S&P 500 gained 25.70 points to 2,868.44. The Dow Jones Industrial Average rose 133.33 points, or 0.6 percent, to 23,883.09. The Nasdaq climbed 98.41 points, or 1.1 percent, to 8,809.12.

Small stocks in the Russell 2000 index were doing even better than their larger rivals for much of the day, before shedding some of their gains by late afternoon. The Russell 2000 rose 9.54 points, or 0.8 percent, to 1,273.51.

A barrel of U.S. oil to be delivered in June jumped 20.5 percent to settle at $24.56 Tuesday, up from a low point of $6.50 set late last month. Oil still is well below the roughly $60 that it cost at the start of the year, after plunging on worries that the collapse in oil demand would lead to topped-out storage tanks.

Brent crude, the standard for international pricing, gained 13.9 percent to close at $30.97 per barrel.

“The feeling on the floor is that energy is in a better spot, and while it’s not brilliant,” the gulf between oil supplies and demand “is starting to shift in a more positive direction,” Chris Weston of Pepperstone said in a report.