US stocks surge as oil rebounds

New York, Feb 23 (IANS) The US stocks ticked up in the morning session on Monday, as a strong rebound in oil prices boosted Wall Street sentiment.

By midday, the Dow Jones Industrial Average surged 214.08 points, or 1.31 percent, to 16,606.07. The S&P 500 gained 24.55 points, or 1.28 percent, to 1,942.33. The Nasdaq Composite Index leapt 61.90 points, or 1.37 percent, to 4,566.33, Xinhua news agency reported.

Oil prices traded sharply higher around midday Monday, with the US oil surging about 7 percent, as the International Energy Agency said the US shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017.

On Friday, oil prices suffered big losses after government data showed a rise in the US crude stockpiles.

Also, the market got support following a broad-based rally in global stock markets.

In Asia, Chinese shares regained the 2,900-point mark on Monday, following the appointment of a new regulator head on Saturday. The benchmark Shanghai Composite Index surged 2.35 percent to close at 2,927.18 points.

European equities also traded sharply higher buoyed by the solid gains in commodity prices.

On Friday, the US stocks closed mixed after wavering in a tight range, as investors digested the country's consumer price data amid a plunge in oil prices.