NEW YORK, April 17 (Xinhua) -- U.S. stocks finished higher on Friday, propelled by a sharp drop in global oil prices and easing geopolitical tensions, with the S&P 500 crossing the 7,100 milestone for the first time.
The Dow Jones Industrial Average rose 1.79 percent to 49,447.43. The S&P 500 added 1.2 percent to 7,126.06. The Nasdaq Composite Index increased by 1.52 percent to 24,468.48, securing its longest positive streak since 1992.
Nine of the 11 primary S&P 500 sectors ended in the green. The consumer discretionary and industrials sectors led the gainers, advancing 1.97 percent and 1.82 percent, respectively. Meanwhile, the energy and utilities sectors were the only laggards, declining 2.94 percent and 0.42 percent.
Market sentiment received a major boost following an announcement regarding maritime security in the Middle East.
The reopening of the Strait of Hormuz triggered a massive sell-off in energy markets. West Texas Intermediate crude for May delivery plunged 10.84 U.S. dollars, or 11.45 percent, to settle at 83.85 dollars a barrel on the New York Mercantile Exchange. Similarly, Brent crude for June delivery decreased by 9.01 dollars, or 9.07 percent, to close at 90.38 dollars a barrel on the London ICE Futures Exchange.
The swift transition from oversold to overbought in major U.S. indexes also raised concerns about the sustainability of the rally.
"The equity market's rapid 12-day transition from oversold to overbought masks a precarious macro reality, especially given the ongoing threat of crude oil above 90 dollars/barrel," said Craig Johnson, chief market technician of Piper Sandler.
The sudden plunge in fuel costs spurred a strong rebound in equities highly vulnerable to supply chain and travel disruptions. Shares of major cruise operators and airlines advanced significantly, highlighted by a 7.34 percent jump for Royal Caribbean and a 2.06 percent gain for Boeing. Other major equities such as Amazon and Airbnb also moved higher during the session.
In other corporate earnings news, Netflix experienced a sharp decline in after-hours trading on Thursday following the release of its quarterly operating results. Despite reporting better-than-expected first-quarter results, the streaming giant's stock dropped 9.72 percent on Friday as investors shifted their focus toward a weaker-than-anticipated outlook for the upcoming second quarter. ■