U.S. material and energy stocks rose over oil prices surge

Oil prices surged on Monday to significant highs, the move is boosting U.S. materials and energy stocks, but concerns that rising prices would worsen supply chain caused Wall Street to give up early gains.

U.S. crude jumped 2.5% to $81.31 per barrel, a level not seen since late 2014, and Brent rallied 1.9% to $83.98.

Investors wonder whether energy supplies are tight enough to warrant oil testing $100 a barrel, but most seemed to agree prices are likely to stay high in the short term.

Basic materials and energy stocks in the S&P 500 jumped 0.96% and 0.88% respectively, The Dow Jones Industrial Average reaped early gains and was off 0.06%, the S&P 500 slid 0.04%, and the Nasdaq Composite inched up just 0.09%.

The pan-European STOXX 600 index (.STOXX) rose 0.05% and MSCI’s gauge of stocks across the globe (.MIWD00000PUS) gained 0.25%.