Tech companies lead stocks broadly higher; oil slumps

Stocks closed higher on Wall Street for the second straight day Wednesday, extending Tuesday’s strong gains as investors bet an interest-rate cut could be ahead.

Technology, industrial, and healthcare companies accounted for much of the broad gains, which were tempered by a slide in energy stocks following a 3.4% plunge in the price of U.S. crude oil.

Traders shrugged off a report showing private U.S. companies added the fewest jobs in nine years last month. The bleak jobs snapshot might have been welcomed by investors hoping that it could help persuade the Federal Reserve to cut interest rates.

“It could help underpin a Fed rate cut,” said Quincy Krosby, chief market strategist at Prudential Financial. “The market has been in essence calling for a rate cut for a number of months as the economic data have waned and tariff issues have intensified.”

The S&P 500 index gained 22.8 points (0.8%) to 2,826.15. The benchmark index’s 2.1% gain Tuesday was its best performance since January.

The Dow Jones Industrial Average climbed 207.39 (0.8%) to 25,539.57. The Nasdaq composite rose 48.36 (0.6%) to 7,575.48. The Russell 2000 index of smaller companies slipped 1.77 (0.1%) to 1,506.79.

Major stock indexes in Europe closed broadly higher.

Oil prices slumped following a report showing an unexpected surge in U.S. crude supplies. Benchmark U.S. crude settled at $51.68 a barrel. Brent crude oil, the international standard, closed 2.2% lower at $60.63 a barrel.