Stocks gain as Fed rate hopes fuel continued rally

Energy-related stocks rose Monday while oil edged higher. The S&P 500 Energy Sector Select ETF (XLE) rose more than 1%, leading overall market gains.

Crude futures rose on renewed geopolitical tensions and after Saudi Aramco raised prices for Asian customers, signaling tight supplies.

West Texas Intermediate (CL=F) rose less than 1% to above $78 per barrel. Brent, the international benchmark price, also gained (BZ=F) to trade above $83 per barrel.

Last week, oil prices fell more than 6% amid diplomatic efforts to achieve a ceasefire between Hamas and Israel. By Monday, that prospect had dimmed.

“I think we have seen a major sell-off in the crude oil sector from hedge funds and therefore more purchasing power could be put aside if we get further geopolitical fears,” said Dennis Kissler, senior vice president of BOK Financial, in a note to clients Monday.