US shares higher despite oil price volatility

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Image source, AP

(Close): Shares on Wall Street ended higher on Wednesday despite a fall in oil prices after official US data showed large stocks of crude.

The Dow Jones Industrial Average closed up 0.73% at 16,912.2 points.

The price of Brent crude rose as much as 0.8% to $52.73, but later settled at $51.33 a barrel.

All the other main US indexes made similar gains, with the S&P 500 closing up 0.8% at 1,995.8, while the Nasdaq finished 0.9% higher at 4,791.1.

Oil company Chevron was the biggest gainer on the Dow in early trading and ended the day up 1.3%.

The construction equipment maker Caterpillar rose nearly 2% in morning trade, but finished down 0.6%.

Its shares have fallen from about $115 since the beginning of the year after cutting its workforce.

On the wider S&P500, shares in Yum Brands, the owner of KFC and Taco Bell, ended the day down 18.8%.

The company lowered its full-year earnings forecasts, saying it had been hit by slow growth in China and the strength of the dollar.