Wall Street stocks rise on higher oil and risk-on mood

• US stocks climb with oil as the energy sector leads the indices. 
• North Korea release three prisoners and bolsters risk-on mood. 
• The 10-year Treasury yield benchmark is trading above the 3% mark. 

The US stock indices made substantial gained on Wednesday as oil soared. The S&P 500 gained 0.97% to 2,697.79 while the Dow Jones Industrial Average rose 0.75% to 24,542.54. The tech-heavy Nasdaq Composite Index gained 1% to 7,339.9. Oil jumped 3.2% on as the US withdrew from the Iran nuclear deal on Tuesday. The energy sector was the leading one gaining 2.18% on Wednesday. Meanwhile, the CBOE Volatility Index dropped. The VIX tanked 8.8% to 13.42 as it fell for five consecutive days and closed at its lowest level since January 26. 

On the geopolitical front, the market saw as a positive that the US President Trump announced that Secretary of State Pompeo came back from North Korea with three released prisoners. Pompeo went to North Korea to meet with Kim Jong Un, supreme leader of North Korea. Trump himself is scheduled to go to North Korea in the near future.

“I am pleased to inform you that Secretary of State Mike Pompeo is in the air and on his way back from North Korea with the three wonderful gentlemen that everyone is looking so forward to meeting. They seem to be in good health. Also, good meeting with Kim Jong Un. Date & Place set” tweeted Trump. 

Meanwhile, the 10 year Treasury yield reclaimed the 3% level on Wednesday. “This tug-of-war remains in the market, regardless of the positive headlines on North Korea, regardless of the positive headlines on earnings. This is a market that has to sort that out, and that 10-year yield flirting with 3 percent again is a reflection of that tug-of-war,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. 

S&P 500 daily chart