A man looks at screens displaying market information as he walks past the Australian Stock Exchange in central Sydney July 4, 2013. Australian shares rebounded 1 percent on Thursday, as Wall Street rose modestly higher overnight and a rise in metals price
A man looks at screens displaying market information as he walks past the Australian Stock Exchange in central Sydney July 4, 2013. Reuters/David Gray

Wall Street indicated a steep rise on Tuesday, following a proper recovery of oil costs after Monday’s adverse results. Tech stocks recorded vital gains.

The Dow Jones Index closed at 192 points reaching 1.10 percent to 17,720. All 10 S&P 500s showed a positive growth due to the rise in healthcare and technology sector, and generated 21 points to reach 1.06 percent to 2,078. On the other hand, Nasdaq rose to 66 points, reaching 1.33 percent to 5,107.

Brent and US light crude, however, saw a rise up to 3.2 percent per barrel. With the increasing oil prices, stock value of energy sector also witnessed a hike with Chevron recording a 1 percent rise, while Exxon Mobil recording 0.5 percent rise.

On Monday, the value of oil witnessed losses of more than 3 percent that put significant pressure on the energy sector, but a sudden rise in the value made the trade game interesting. West Texas Intermediate crude prices rose to 2.88 percent on Tuesday, amounting to US$37.87 (AU$52.04) per barrel, while Brent saw a gain of 3.19 percent prompting the price per barrel to US$37.79 (AU$51.93).

Rhino Trading Partners chief strategist Michael Block has claimed that, following absent earnings and big datasets, oil prices will see competent rise. “Yesterday, Saudi Aramco’s chairman had a lot to say, promising that the oil glut would ease up next year given how many US shale producers are reducing production,” Fox Business quoted him as saying.

“But he was guarded on revenues, which could be read as the Saudi’s are planning to keep pressure on prices to continue to squeeze other producers to death. That doesn’t strike me as very bullish.”

The lowering of oil prices is always good news for consumers as it indicates savings for them, but the declining oil value is a big worry for the economy. The main reason behind the plunging oil prices is the global oversupply.

So far as other items, such as metals are concerned, gold value declined to 0.65 percent, while silver saw a hike of 0.32 percent.

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