U.S. stocks rallied across the board after international oil prices plunged following remarks that G7 finance ministers are considering the release of strategic petroleum reserves and that U.S. President Donald Trump said the United States could take control of the Strait of Hormuz.
On March 9, in New York trading, the Dow Jones Industrial Average rose 0.50%, the S&P 500 gained 0.83%, and the Nasdaq Composite advanced 1.38%. Most technology stocks rose, with the Nasdaq posting the largest gain.
The previous day, international oil prices had surged after reports that Middle Eastern countries began cutting production one after another following the closure of the Strait of Hormuz. West Texas Intermediate (WTI) crude had at one point jumped 30%, reaching $119 per barrel.
However, prices reversed sharply after G7 finance ministers said they were considering releasing strategic petroleum reserves and Trump remarked that the U.S. military could take control of the Strait of Hormuz.
CNBC reported that G7 finance ministers plan to hold a video conference Tuesday morning to discuss the possibility of a coordinated release of strategic petroleum reserves. CNBC added that such a release is highly likely after the meeting.
Earlier, the ministers said during a virtual meeting, “We are prepared to take all necessary measures to support global energy supply, including the release of strategic petroleum reserves.”
Trump also told reporters, “Iran has no navy, no communications, and no air force,” adding that “the war will end very quickly.” He added that “the U.S. military could take control of the Strait of Hormuz.”
Following these developments, international oil prices plunged and reversed course.
As of 3:50 p.m. on March 9, West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange were trading at $81.58 per barrel, down 8.57%.
Brent crude futures also fell 8.91% to $85.15 per barrel.
As oil prices plunged, U.S. stocks rallied broadly. Among major technology stocks, Broadcom jumped 4.63%, with others also posting gains.
By sector, electric vehicle stocks also rallied, with Tesla rising 0.49%.
Semiconductor stocks also advanced broadly, with Nvidia gaining 2.68%. The Philadelphia Semiconductor Index surged 3.93% to close the session.
Attention in the U.S. stock market is now shifting to Oracle’s earnings results, scheduled to be released after the market closes on March 10.