Shares rise because the S&P 500 inches in direction of a brand new document

Shares rose on Wednesday, pushing the S&P 500 back near an all-time high.

The 500 stock index rose 0.32%, about 0.5% from its high. The Dow Jones Industrial Average added 110 points. The technology-heavy Nasdaq Composite gained just 0.2%.

All three indices are pretty close to record levels, with the S&P 500 just 0.7% below its all-time high. The Dow and Nasdaq are 1.4% and 3.2% below their respective record highs.

Energy stocks again outperformed the broader market on Wednesday as crude oil prices continued their recent rally. Investors have bought shares in some of the largest oil and gas companies in the country in recent sessions as optimism about the US economic recovery fuels demand for crude oil, airfare and other travel-related assets.

Occidental Petroleum was up 4.1%, Diamondback Energy was up 2.5% and Marathon Oil was up 1.4%. The broad Energy Select Sector SPDR ETF gained 2.1%.

Those stock moves came as West Texas Intermediate oil futures rose 1.35% to $ 68.63 a barrel, and rose even higher after contracts closed on Tuesday at their highest level since 2018.

AMC stocks, popular with retail investors and often subject to a trading frenzy, rose 80% and held on due to volatility. Meme stock rose 22% Tuesday after raising $ 230.5 million through a stock sale.

Zoom Video’s shares fell 1.5% despite the company reporting a profit breakout on Tuesday. Sales increased 191% in the first quarter.

Fears of inflation and the way the Federal Reserve might react have weighed on sentiment lately, although key averages are still hovering around all-time highs.

“Inflation expectations have also risen beyond what is achievable in the short term. We believe inflation is trending upwards and will ultimately surpass the Fed’s targets in the long term,” said Mike Wilson, chief strategist for US stocks at Morgan Stanley. “However, expectations have also risen and are now pricing this increase in many investment markets.”

June has been a weak month for stocks historically, but Instinet points out that the S&P 500 has had a better track record recently, rising every June since 2016.

On Tuesday, the Dow gained 46 points after rising more than 300 points once. The S&P broke a 3-day winning streak, closing just 2 points after beating up to 4 points from its all-time high of 4,238. The Nasdaq Composite lost 0.09%.

The markets could be put on hold ahead of Friday’s big job report. According to economists polled by Dow Jones, the US likely added 671,000 non-farm payrolls in May, up from 266,000 jobs the previous month.

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– with reports from CNBC’s Patti Domm.

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