NEW YORK (AP) - Widespread gains in commodity prices lifted energy and materials companies as part of a broad stock market rally Wednesday after three days of declines. Stocks built on morning gains after the Federal Reserve released minutes that showed that officials agreed that the economy is improving, which could lead to higher demand for raw materials like steel and fertilizer.
The Fed's bond-buying program has kept interest rates low and sent commodities and stock prices higher overall since late August. The U.S. stock market has gained nearly 25 percent since the central bank signaled that it would begin the asset-purchase plan. Commodity prices had fallen over the last two weeks after months of gains on concerns about the impact of high energy prices on the economy.
Oil gained nearly 4 percent to move back above $100 a barrel, due in part to a Dept. of Energy report that inventories of crude oil did not rise last week as expected. Energy stocks like Chevron Corp. and Exxon Mobil Corp. rose nearly 2 percent.
Commodity prices halted their slide after floods damaged wheat, corn and soybean fields, with traders anticipating a supply shortage would lead to higher prices. Materials companies in the S&P 500 rose 2.1 percent, led by a nearly 5 percent gain in CF Industries Holdings. The company sells fertilizer.