Stocks Jumped as Brexit Took Backseat

U.S. stocks surged for a second day on Wednesday as the Brexit fears took a back seat. At close, the Dow Jones Industrial Average gained 284.96 points, or 1.64%, to 17,694.68. The S&P 500 added 34.68 points, or 1.70%, to 2,070.77. The Nasdaq Composite rose 87.38 points, or 1.86% to 4,779.25.

The Federal Reserve gave the go-ahead to most banks to lift dividends and increase stock buybacks, a sign of the growing recognition the regulator has given for the capital raised by the financial sector.

Oil futures settled with a gain of more than 4% after U.S. government data revealed a sixth straight weekly decline in domestic crude supplies. August West Texas Intermediate crude ended the session at $49.88 a barrel, up $2.03, or 4.2%. August Brent crude rose $2.03, or 4.2%, to $50.61 a barrel.

U.S. bank subsidiaries of Deutsche Bank AG and Banco Santander SA yet again failed the Federal Reserve’s stress test on Wednesday due to “broad and substantial weaknesses” in their capital planning processes.

Canadian Imperial Bank of Commerce agreed to buy Chicago-based PrivateBancorp Inc. for $3.8 billion, joining the list of Canadian lenders looking to the U.S.