Record highs on US stock exchanges driven by rising oil prices ahead of possible Opec production cut

Jasper Jolly
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Nasdaq Market In New York
The Nasdaq Composite Index nudged above all-time record highs (Source: Getty)

US equities moved upwards as the Nasdaq stock exchange hit a fresh all-time record high on intraday trading while the Russell 2000 also broke records on the back of expectations of an oil price rise.

The Nasdaq Composite index gained over 0.5 per cent to break the previous all-time high of 5,359.90 points at 5,362.48. The Russell 2000, which tracks a broader basket of companies, also broke through previous marks to record a high of 1,323.721.

The Dow Jones neared its own all-time highs, gaining almost 30 points to a high of 18,927.86. The S&P 500 also narrowly missed its record high, peaking at 2,193.72 before fading slightly.

Rises in oil stocks drove the gains. Market expectations of an Opec agreement confirming a production cut next week have led to broad rises in oil stocks ahead of expected price rises.

The expectations were strengthened by comments by Russian President Vladimir Putin and Iranian oil minister Bijan Zanganeh which both suggested that a production cut was imminent.

The oil price contribute towards a big rally in US equities since the election of Donald Trump as US President. The Dow Jones is up almost 600 points since Trump's surprise victory in expectation of a large fiscal stimulus in the form of unfunded infrastructure investment.

US stocks have been further aided by a slight dip in the value of the US dollar.

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