Stocks jump as Dow, S&P 500, Nasdaq, Russell 2000 close at records

Corrections & clarifications: An earlier version of this Associated Press story misstated the direction of an anticipated Federal Reserve interest rate move. Investors are bracing for a December rate hike. 

NEW YORK - U.S. stocks jumped Monday as all four major U.S. indexes closed at new record highs.

Stocks got a lift from energy stocks as the price of oil jumped. Investors are hoping that OPEC countries will soon finalize a deal that would cut oil production and help support prices. The start of the week once again brought several corporate deals, with companies in the energy and technology industry making moves.

The Standard & Poor's 500 index rose 16.28, or 0.8%, to close at a record 2198.18. The Dow Jones industrial average gained 88.76, or 0.5%, to a record close of 18,956.69. The Nasdaq composite index gained 47.35, or 0.9%, to close at an all-time high of 5368.86.  The Russell 2000, an index of smaller companies, rose 6.59, or 0.5%, to 1322.23.

It was the first time all of those indexes set records on the same day since December 31, 1999, according to Ryan Detrick, senior market strategist for LPL Financial.

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For the past couple of weeks, the main driver in markets has been the election of Donald Trump as the next U.S. president and bullishness about possible pro-growth fiscal policies. In general, his victory has helped stocks and the dollar but weighed on bonds. But slowly attention is shifting onto other matters, including next month’s widely anticipated interest rate hike from the Federal Reserve.

Also generating attention is the next meeting of oil ministers from the OPEC oil cartel on Nov. 30 in Vienna, Austria. Expectations are growing that the ministers will push through a production cut following an indication recently that one was on the cards. That’s helped buoy oil prices in markets.

Benchmark U.S. crude oil rose to its highest price this month. It gained $1.80, or 3.9%, to $47.49 a barrel while Brent crude, the international standard, rose $2.04, or 4.4%, to $48.90 a barrel in London.

Quincy Krosby, market strategist at Prudential Financial, said investors are encouraged that OPEC is trying to limit production. But she doesn’t think a deal, if one happens, will have much effect on oil prices.

“There’s nothing to suggest the agreement’s going to hold,” she said. “When all is said and done, supply and demand will ultimately dictate the price.”

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World stock markets were listless Monday with gains coming mostly in Japan and China as the dollar’s strength against local currencies lifted the export outlook.

European shares edged higher as Britain’s FTSE 100 rose less than 0.1%. France’s CAC 40 rose 0.6% and Germany’s DAX was up 0.2%.

Japan’s benchmark Nikkei 225 index rose 0.8% and the Shanghai Composite Index added 0.8%. However, South Korea’s Kospi dipped 0.4% and Hong Kong’s Hang Seng edged up less than 0.1%.

Chinese authorities set the yuan’s official “parity rate,” known as the fix, for the country’s tightly controlled currency 189 basis points lower to 6.8985 against the dollar. It’s the 12th day in a row Beijing has guided the yuan lower, amid suspicions Beijing is willing to let the currency weaken to help exports. The yuan, also known as the renminbi, hasn’t been this weak since the depths of the global financial crisis in 2008. The currency’s decline has hastened after Donald Trump’s U.S. election victory. He has vowed to brand China a currency manipulator as part of measures to counter what he says are unfair trade practices.

The dollar has also been rising against other major world currencies as investors increasingly factor in a Fed rate hike in December based on comments last week from U.S. central bank policymakers. The dollar’s nearly 7% again against the yen in the past week to its highest in six months has helped boost Japan’s major exporters, which benefit because their overseas profits can be converted into more yen. Trump’s campaign promises to boost the U.S. economy by ramping up government spending and cutting red tape have lifted the dollar but investors continue to wait for concrete details.

The dollar climbed to 110.85 yen from 110.92 yen in late trading Friday. The euro edged up to $1.0632 from $1.0589.