US stocks post solid weekly gains amid surging oil, economic data
New York: US stocks surged for the week, as US President Donald Trump's decision to withdraw from the Iran nuclear deal sent oil prices sharply higher while tamed inflation data eased concerns about the pace of the US central bank's tightening strategy.
Trump said on Tuesday that the US would withdraw from the Iran nuclear deal, a landmark international agreement signed in 2015.
In a televised speech, Trump announced the exit, adding he will not sign the waiver of nuke-related sanctions against Iran, reports Xinhua.
Trump repeated his tough stance on the deal, saying it had failed to prevent Iran from developing nuclear weapons or supporting terrorism in the region.
Following Trump's decision, oil prices climbed to their highest levels in about three and a half years, with US oil trading firmly above $70 a barrel, which was last seen in November 2014, as traders bet the US' sanctions on Iran would reduce global crude supplies.
As a result, the energy sector surged about four per cent for the week, leading the advancers among the S&P 500's 11 sectors.
On the economic front, the consumer price index (CPI) for all urban consumers increased 0.2 per cent in April on a seasonally adjusted basis, missing the market consensus of 0.3 per cent, the US Labor Department reported on Thursday.
The index for all items less food and energy increased 0.1 per cent in April, also below market estimates of a 0.2-per cent gain.
Some analysts believed that the Federal Reserve won't become more aggressive after the release of tamed inflation data.
The number of job openings increased to 6.6 million on the last business day of March, beating market consensus of 6.1 million.