The rising value of energy and financial shares helped continue the end-of-year rally for United States sharemarkets yesterday, with oil rising for a second straight session.
The expected holiday demand, and cold weather, supported demand for oil in the US as oil investors shrugged off the stronger dollar and ongoing concerns about eurozone debt woes.
US petrol futures surged to their highest level since May on hopes that holiday driving will boost demand and because a closed spot arbitrage window to ship supply from Europe will make fewer imports available.
The Standard and Poor's 500 reached a two-year high, continuing a steady upward march investors believe will continue in 2011.
The S&P is up 11.6% for the year.
The financial sector, which has lagged the broader market, was up 0.4% as some investors bet the sector could be among the leaders next year after a strong December.
The Dow was down 0.1%, but the technology-rich Nasdaq was up 0.3% yesterday.
"We have seen this year-end rally refuse to give up any ground," BB&T Wealth Management senior vice-president Bucky Hellwig said.
The combination of improving economic data, additional stimulus from the Federal Reserve and the extension of tax cuts was keeping shares in demand, Mr Hellwig told Reuters.
US sharemarkets will be closed on Friday (Saturday NZ time) to observe the Christmas Day holiday.
