Oil Hits Six-Month High, Sets New '09 Record; Dow Went For a Ride

Light sweet crude bounced back in the face of losses early in the day to settle at a new high for the year, at $62.45 per barrel on the New York Mercantile Exchange. The last time oil settled this high was on November 5 of 2008.

This rise of 78 cents or approximately 1.3% indicates a surge in consumer confidence for what has been a turbulent year. Positive reports combined with the jump in oil prices aided in a 200-point rise in the Dow Jones Industrial Average.

In London on the ICE Futures Exchange, oil settled up by $1.03 at $61.24 per barrel. According to research group the Conference Board, consumer confidence in the U.S. jumped from 40.8 in April to 54.9 in May, hitting a mark well above analyst predictions.

OPEC, the Organization of Petroleum Exporting Countries, plans to meet on Thursday to review policies and discuss previous cuts in oil production, which now amount to 4.2 million barrels per day. Experts say that OPEC will not make further cuts in fuel production if the price of crude remains at $60 per barrel or more.

Stocks Take a Joy Ride With Upbeat Consumer

The Dow Jones Industrial Average was up 196.17 points, or 2.4%, at 8473.49, while the S&P 500 was higher by 23.33 points, or 2.6%, at 910.33. The Nasdaq fared the best, up 58.42 points, or 3.5% at 1750.43.

Stocks opened lower on concerns about North Korea missile firings and dim data on home prices, but reversed course as investors derived more optimism from the Conference Board consumer confidence index.

The consumer confidence index increased unexpectedly to 54.9 in May, from 40.8 in April. The move represents the biggest gain in six years and brings it to its highest level in eight months.