WASHINGTON — The Dow Jones Industrial Average rose 0.6% to 22,737.40 Thursday after the U.S. Securities and Exchange Commission proposed tougher rules on how firms with financial products such as stocks and bonds can engage in trading.
The Dow’s gains were fueled by a rebound in oil prices, which have gained more than 70% from a low of $52.26 a barrel last month.
The market is still down nearly a quarter of its value since the election, but many investors are more upbeat about the economic outlook than a year ago, when the market’s biggest declines were triggered by the collapse of oil prices.
“The market really is on the upswing, and there’s a lot of optimism,” said Matthew Schlesinger, a portfolio manager at T. Rowe Price.
“It’s just a matter of timing.”
The Dow has risen more than 1,000 points since President Donald Trump won the election on Nov. 8.
That includes a rally Thursday that lasted more than two hours.
A day earlier, the Dow had fallen 7.8% amid a sharp selloff in oil and gas stocks, but it rallied again Wednesday and surged to a record high on Thursday.
The rally was fueled by bullish bets by energy companies and by a spike in corporate earnings that helped fuel stocks.
The S&P 500, which tracks a broad basket of companies including tech giants Facebook and Alphabet Inc., added nearly 6% Thursday.
But the Dow has gained more in the past two days.
Investors also are encouraged by reports that the Federal Reserve has begun a review of the economic health of the U-S.
The U.N. economic commission also issued a report Thursday that urged the United States to increase its stimulus spending to help keep the unemployment rate from rising above 9%.
The U, which has been struggling to find its footing after the financial crisis, has a $19 trillion debt pile and is expected to need $1.5 trillion in stimulus spending this year, according to the commission.
The Fed, which will decide when to raise interest rates later this month, has said that it needs to reduce its asset purchases, including mortgage-backed securities, as it tries to stabilize the economy.
“We are not looking to do anything at the moment that would lead to a further deterioration of the outlook for the U.,” said Fed Chairman Stanley Fischer.
“We do not have the ability right now to increase our purchases.”
The dollar fell against a basket of currencies, with the euro down 0.7% against the dollar at $1,284.50.
The yen was down 0% against a dollar at 109.10 yen.
The euro was up 0.4% against $1.,267.25.
The dollar index was down 1.5% at 103.25 to 103.08 US cents.