U.S. stocks rose on 6 October as falling oil prices eased pressure on markets and helped major indexes move towards fresh records.
The S&P 500 gained 0.5% and was on course to close above its previous record, set in August.
The Dow Jones Industrial Average also advanced. It rose by 185 points, or 0.4%, in early trading.
Meanwhile, the Nasdaq composite added 0.6%. The index moved towards a new record after reaching an all-time high a day earlier.
Oil prices also supported the market. Brent crude, the international benchmark, fell 2.3% to $97.97 a barrel.
The price has dropped from almost $110 a barrel several weeks ago. As a result, the decline has reduced some pressure from high inflation affecting consumers and businesses.
Analysts said oil supplies have improved. More crude has moved through the Strait of Hormuz, while flows through Saudi Arabia’s East-West pipeline have also recovered.
However, tensions between the United States and Iran remain high. Therefore, investors continue to watch developments in the region closely.
ING commodities strategists Warren Patterson and Ewa Manthey said the recovery in oil flows had reduced some concerns about supply. However, they warned that the market remained sensitive to possible disruptions.
The fall in oil prices also eased pressure in the bond market.
The yield on the 10-year US Treasury note fell to 5.28%, from 5.31% at the close of trading on 5 October.
Bond yields have recently reached levels not seen for years in several major markets. Higher yields can increase borrowing costs for households and businesses.
They can also affect stock markets because investors may demand better returns from shares when government bonds offer higher yields.
For now, U.S. stocks are benefiting from weaker oil prices and easing pressure in bond markets.
However, investors remain focused on energy supplies, inflation, interest rates and geopolitical tensions as they assess the direction of global markets.
