Wall Street closes higher as oil recovers

Wall Street sign Image copyright AP

(Close): Wall Street has closed higher, bolstered by strong corporate results and recovering oil prices.

The Dow Jones rose 1.8%, to 16,167, while the S&P 500 added 1.4% to 1877.08 and the Nasdaq rose 1.1% to 4567.67.

Oil prices steadied above $30 a barrel on hopes that Opec and non-Opec producers would take action to tackle oversupply.

3M was the biggest riser on the Dow, while handbag-maker Coach topped the S&P risers.

"This is a schizophrenic market. Big up days, big down days. No real direction. We need some stability in oil prices for the markets to calm down from here and become less volatile," said Tim Ghriskey, chief investment officer of Solaris Group.

The US Federal Reserve starts its two-day meeting on Tuesday. Although it is not expected to make any changes to interest rates, investors will analyse the commentary to gauge the impact of the recent market turmoil on the central bank's outlook.

Shares in Apple were flat at $99.30 ahead of its first quarter results, but have fallen almost 14% in the past three months on fears that the California-based company will not be able to maintain the stellar levels of sales growth it has long enjoyed.