Shares of SM Energy Co (NYSE: SM) soared 5.00% in Thursday's pre-market trading session, as investors react positively to rising oil prices and improving market sentiment.

The Denver-based oil and gas company, which focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids, is benefiting from a broader rally in the energy sector. While there was no company-specific news driving the stock's movement, several macro factors appear to be contributing to the surge:

1. Oil price rally: Crude oil prices have been climbing, boosting prospects for oil and gas producers like SM Energy. Higher oil prices typically lead to improved profitability for exploration and production companies. 2. Positive market sentiment: The overall stock market has been showing signs of strength, with major indices trending upward. This improved investor confidence is likely spilling over into the energy sector. 3. Sector rotation: Investors may be rotating into energy stocks as they seek exposure to sectors that could benefit from economic recovery and inflation protection. 4. Potential production increases: As global oil demand continues to recover, there's speculation that U.S. shale producers like SM Energy may increase production, potentially leading to higher revenues and earnings.

While the stock's significant pre-market move is catching investors' attention, it's important to note that energy stocks can be volatile and subject to rapid price swings based on changes in commodity prices and market sentiment. Investors should carefully consider their risk tolerance and conduct thorough research before making investment decisions.

As always, it's advisable to monitor any upcoming company announcements or earnings reports that could provide more insight into SM Energy's operational performance and future outlook.