New York, May 7 (DPA) US stocks were led higher Tuesday by energy and financial shares as the price of crude oil reached another record high and restrictions were eased on government-backed Fannie Mae. Fannie Mae’s government regulator said it would drop its capital requirement for the largest US lender from 20 percent to 15 percent once Fannie Mae raised $6 million in cash, helping financial stocks rebound from a weak opening.
The relaxed requirement would allow Fannie Mae to provide more home loans. Falling housing prices, which resulted in a record number of home foreclosures, has prompted huge losses at banks and a tightening of credit conditions.
Crude oil for June delivery topped $122 per barrel on the New York Mercantile Exchange, sending stocks in energy companies higher.
The blue-chip Average climbed 51.29 points or 0.4 percent to 13,020.83. The broader Standard & Poor 500 Index was up 10.77 points or 0.77 percent to 1,418.26. The technology-heavy Nasdaq Composite Index rose 19.19 points or 0.78 percent, to 2,483.31.