Stocks finished higher Tuesday as investors digested geopolitical updates and awaited the conclusion of the Federal Reserve’s policy meeting Wednesday. The Dow added 33 points, while the S&P 500 gained 0.3%. The Nasdaq Composite was up 0.4%.
WTI crude fell 5.7% to $59.34/barrel on news Saudi Arabia’s oil supply will be fully restored by the end of the month with 50% of the country’s oil output lost over the weekend already reinstated. On Saturday, attacks on Saudi Arabia’s crude production facilities shut off roughly 5% of the world’s oil supply, sparking concern over the impact to economic growth. WTI crude spiked 14.8% Monday, its largest jump since 2008.
Elsewhere, the Federal Reserve Bank of New York injected $53 billion into the banking system to help stabilize the repo market, which had seen a sharp uptick in rates due several factors, including a quarterly corporate tax deadline and settlement for certain major Treasury auctions. Treasuries advanced with the yield on the 10-year note down three basis points to 1.81%.
Ten of 11 S&P 500 sectors closed in positive territory, with the Energy group the sole decliner amid a reversal in oil prices. In corporate news, Kraft Heinz fell 4.3% after its second largest shareholder sold more than 25 million shares. Home Depot finished slightly lower following an analyst downgrade.
On the data front, industrial production rose 0.6% in August, topping expectations and the prior 0.1% dip. Separately, the NAHB Housing Market Index revealed homebuilder sentiment increased in September to the highest level this year.