U.S. stocks rallied Wednesday on the back of a jump in oil prices after reports that OPEC had reached a deal to cut production.
"The market will move on the deal but I think the expectations is that it will sort of go away," said Quincy Krosby, market strategist at Prudential Financial and former U.S. energy attaché. "Remember, they all agree that oil prices need to go higher."
The deal was first reported by Reuters in afternoon ET. U.S. crude settled 5.33 percent higher at $47.05 per barrel on the heels of the news. Earlier, U.S. oil had traded lower after a build in gasoline stockpiles offset a draw in crude inventories.
"Any kind of cut is being taken as big news because it gives a bit of a floor to oil prices at around $44," said Robert Pavlik, chief market strategist at Boston Private Wealth.
The Energy Select Sector SPDR Fund ETF (XLE) ended Wednesday trading 4.32 percent higher.
Peter Cardillo, chief market economist at First Standard Financial, had said earlier "there is definitely a feeling that an OPEC deal is coming in November."
The Dow Jones industrial average rose about 110, with ExxonMobil and Caterpillar contributing the most gains. The S&P 500 rose 0.5 percent as energy soared more than 4 percent. Energy saw its best daily performance since January 14, when it gained 4.47 percent.
The Nasdaq composite closed 0.2 percent higher, despite the iShares Nasdaq Biotechnology ETF (IBB) slipping 0.81 percent.
S&P and the Dow both surged more than half a percent after the OPEC deal was announced, while the Nasdaq rose about 0.3 percent.