Stocks closed with gains Wednesday for the first time this week as oil prices rebounded from a historic drop into negative territory.
The Dow Jones industrial average rose Wednesday by 456 points, a gain of 2 percent, as West Texas Intermediate crude settled at $13.78 per barrel, up from around $11 Tuesday. Oil traded as low as negative $40 a barrel Monday after a drastic 30 percent plunge in the demand for fuel left companies effectively paying others to store their crude.
The Nasdaq composite rose 2.8 percent Wednesday and the S&P 500 rose 2.3 percent.
Steep declines in automobile and air travel have left petroleum companies with more oil than warehouses can store, pushing prices to record lows. While past dips in oil prices meant Americans would benefit through cheaper gasoline, industry turmoil now could spread throughout the financial system as highly indebted oil companies face bankruptcies.
President Trump has asked the Treasury and Energy departments to explore ways to aid the industry, and Republican lawmakers have boosted pressure on Treasury Secretary Steven Mnuchin to secure coronavirus economic rescue funding for oil companies