Stocks rise as Syria conflict looks less likely
Stocks closed up on Wall Street Tuesday as the chances of the US attacking Syria seemed to lessen. The biggest gains were in financial and industrial stocks.
The Standard & Poor's 500 index had its sixth straight gain, the longest winning streak since July.
Stocks set new highs in early August, but worries over Syria have pushed them lower since then. Even though Syria isn't a big oil producer, the possibility of a wider conflict in the region drove oil prices to two-year highs last week.
On Tuesday, investors were relieved that Syria accepted a proposal to put its chemical weapons under international control for dismantling. The possibility that the crisis between the U.S. and Syria might be solved peacefully was a factor in the stock market's gain on Monday, too.
The Dow Jones industrial average rose 127.94 points, or 0.9 percent, to close 15,191.06. The Standard & Poor's 500 index rose 12.28 points, or 0.73 percent, to 1,683.99 and the Nasdaq composite rose 22.84 points, or 0.62 percent, to 3,729.02.
Crude oil, which closed above $110 a barrel on Friday, lost $2.13, almost 2 percent, to close at $107.39 a barrel.
All 10 industry groups in the S&P 500 rose. The biggest gains were in financial and industrial stocks.
Despite the recent gains for stocks, Ralph Fogel of Fogel Neale Partners thinks it's about time for a pullback in the market. He noted that it's close to the five-year anniversary of the financial crisis, and the Dow has more than doubled since then.
The years since the crisis brought "almost a straight-up market without a 15 percent correction. That's a pretty neat move," he said. "That doesn't mean you have to have one, but the probability starts to get higher and higher."
"The next significant move isn't up 20" percent, he said. "It's down 20."