Stocks were back near highs by Thursday afternoon as a rally in energy stocks offset a selloff in the health care sector.
The S&P 500 was up 0.7%, the Dow Jones Industrial Average climbed 0.47%, and the Nasdaq increased 1%.
Crude oil jumped on reports Russian Energy Minister Alexander Novak had spoken with Saudi Arabian officials to cut production by up to 5% in light of weaker prices. Novak also said members of the Organization of Petroleum Exporting Countries and non-member countries had proposed a future meeting to discuss strategy given a weaker commodities environment, according to Reuters. West Texas Intermediate crude oil jumped 3.4% to $33.39 a barrel.
"While the potential for a significant bullish stimulus exists in this situation, diplomatic and strategic obstacles -- notably Russia and Saudi Arabia's differing views on the Syrian government and the latter's obstinate dedication to the defense of market share -- will prove major hindrances to cooperation," T. Austin Sapp, commodity analyst at Schneider Electric, wrote in a note.
The energy sector was the best performer as large-cap oilers including Exxon Mobil (XOM) , Chevron (CVX) , Schlumberger (SLB) , and ConocoPhillips (COP) jumped. The Energy Select Sector SPDR ETF (XLE) rose 2.8%.
A number of disappointing earnings reports and softer-than-expected guidance from health care stocks including Celgene (CELG) and Eli Lilly (LLY) dragged on the broader sector. Health care was the worst performer on markets Thursday with major drugmakers Pfizer (PFE) , Merck (MRK) , Gilead Sciences (GILD) and Bristol-Myers Squibb (BMY) lower. The Health Care SPDR ETF (XLV) tumbled 1.9%.