Energy stocks lead a broad rally as the price of oil soars

NEW YORK – U.S. stocks made their biggest gain in more than a month Friday as oil prices surged, lifting energy stocks. Tech stocks climbed as Apple jumped the most since August.

Energy companies soared after the price of U.S. crude jumped 9 percent. Oil prices reached their lowest level in 12 years earlier this week, but they jumped the last two days.

The gain Friday, combined with a smaller increase the day before, gave the market its first weekly advance after three weeks of declines. It’s been a dismal start to the year so far, and on Wednesday the Dow Jones industrial average tumbled as much as 565 points before recouping some of its loss.

Much of the volatility has been driven by wild swings in the price of crude oil, which many investors see as a barometer for how well the global economy is doing. A sharp drop in oil prices over the last year and a half has decimated profits at oil companies, and many expect the damage to continue.

As for market turbulence, many expect more of that, too.

Jim Paulsen, chief investment strategist for Wells Capital Management, said he thinks the S&P 500 will slide to around 1,800 before a real recovery comes. That’s below even the darkest moments from Wednesday’s midday swoon.

“It’s going to continue to be a struggle,” he said. “Everyone will be convinced we’re heading for recession, everyone will be convinced we’re in a bear market.”

On Friday the Dow Jones industrial average rose 210.83 points, or 1.3 percent, to 16,093.51. The Standard & Poor’s 500 index had its best day since early December, gaining 37.91 points, or 2 percent, to 1,906.90. The Nasdaq composite index made its biggest gain since September, adding 119.12 points, or 2.7 percent, to 4,591.18.

In energy trading, U.S. crude rose $2.66 to $32.19 a barrel in New York. U.S. oil climbed 21 percent over the last two days, and it has recovered about half its losses from earlier in the year.