Wall Street ended Thursday on a strong note, with all three major U.S. stock indexes closing in the green as investors weighed positive economic signals, surging oil prices, and a notable development in U.S.-EU trade relations.

The Dow Jones Industrial Average soared 404.41 points, or 0.94%, to finish at 43,386.8. The Nasdaq Composite added 194.36 points, or 0.97%, closing at 20,167.9, while the S&P 500 advanced 48.86 points, or 0.80%, to 6,141.02. The Russell 2000, a key barometer for small-cap stocks, outperformed with a 1.62% gain.

Oil Prices Rise on Summer Demand and Tight Inventories

Markets received a boost from a rebound in crude oil, with WTI crude for August delivery settling at $65.39 a barrel, up $0.47, or 0.72%. The rally came amid tightening inventories and record-high refinery activity. According to the U.S. Energy Information Administration, crude stocks dropped by 5.8 million barrels in the week ending June 20, pushing total inventories to 415.1 million barrels, 11% below the five-year average.

Refinery utilization surged to 94.7%, its highest level since July 2024, while gasoline and jet fuel demand rose sharply—gasoline supplied averaged 9.1 million barrels per day, the most since December 2021. These dynamics helped drive a 464,000-barrel draw at the Cushing, Oklahoma, hub and continued to support bullish sentiment in the energy sector.

Trade Tensions Ease on EU Tariff Talks

Investor optimism also stemmed from developments on the global trade front. The European Union signaled a willingness to reduce tariffs on U.S. imports, aiming to curry favor with the Trump administration. The move, confirmed by EU industry chief Stephane Sejourne, is part of efforts to avoid a transatlantic tariff escalation ahead of a July 9 deadline, when duties on most EU exports to the U.S. could spike to 50%.

The EU has proposed rebalancing key sectors and warned of retaliatory tariffs—potentially targeting Boeing (BA) aircraft—if no resolution is found. EU trade chief Maros Sefcovic said that contingency measures are underway to protect European companies, underscoring the high stakes of the negotiations.

Sector and Market Breadth Insights

Market breadth was decisively bullish. According to Finviz data, 74.3% of stocks advanced, and 85.5% hit new highs, with strong participation across large-cap and small-cap sectors. More than 55.6% of stocks were trading above their 200-day moving average, signaling broad underlying strength.

The day's risk-on tone reflected investor confidence despite geopolitical headwinds and inflation concerns. However, analysts continue to monitor potential drag from China’s slowing manufacturing sector and possible U.S. overproduction in shale oil, both of which could weigh on growth and commodity prices later this summer.