NYSE Dow Jones finished today at:

[bigdog]

https://apnews.com/article/russia-u...tokyo-sydney-1ac7c193d204266b2901fe420d32c2c2

Stocks wobble lower, crude climbs after US bans Russian oil

By STAN CHOE

Stocks closed lower Tuesday following another wobbly day of trading on Wall Street, as oil prices climbed after the U.S. banned imports from Russia.

The economic fallout from its invasion of Ukraine also rocked the market for nickel, driving up its price so much that trading for the metal was shut.

The S&P 500 fell 0.7% after careening between a loss of 1% and a gain of 1.8%. Such wide swings have become common as investors struggle to guess how high oil prices will go, and how much they’ll drag on the economy. The benchmark index lost 30.39 points to 4,170.70. It has fallen four days in a row and is now 13.1% below its record high set early this year.

Oil has surged on worries global supplies will be disrupted because Russia is one of the world’s largest energy producers. After President Joe Biden’s announcement of the Russian oil ban, the price of a barrel of U.S. crude rose 3.6% to settle at $123.70. Brent crude, the international standard, rose 3.9% to $127.98.

But oil prices did not climb as high as they did a day earlier, when worries flared about a possible ban and U.S. oil’s price touched $130.50. As oil pared its gains following Biden’s announcement, stocks also trimmed their losses.

The surprising reactions may have been a result of the big moves that markets already made a day earlier, in anticipation of the announcement, said Nate Thooft, chief investment officer of multi-asset solutions at Manulife Investment Management.

“You’ve seen the sanctions ramp up, but in the eyes of the market, that’s old news,” he said. “Now that it’s happened, and a lot of selling has already occurred, the market asks, ‘Who else is going to sell?’ and you have people buy into the market.”

He expects the dizzying hour-to-hour swings to continue. Uncertainty is still high, and many investors are still anxious to trade quickly. “To me, for the traditional investor,” he said, “this is one of those situations where you buy on weakness and close your eyes.”

The Nasdaq composite fell 35.41 points, or 0.3%, to 12,795.55. On Monday, it closed 20% below its record high. The Dow Jones Industrial Average fell 184.74 points, or 0.6%, to 32,632.64. It earlier swung from a loss of 238 points to a gain of 585.

Small company stocks held up better than the broader market. The Russell 2000 rose 11.68 points, or 0.6%, to 1,963.01.

Already high oil prices have pushed the average price of a gallon of gasoline in the country to a record high. Biden said he hopes to limit the pain for Americans, but he acknowledged that the ban will increase gasoline prices.

“Defending freedom is going to cost us as well,” he said.

Biden also said he understood many European allies may not be able to make similar moves, because they are much more dependent on Russian energy supplies. European nations have said they plan to reduce their reliance on Russia for their energy needs, but filling the void without crippling their economies will likely take some time.

“Markets just need time to digest things and they were credibly shocked when it (the invasion) happened,” said Kristina Hooper, chief global market strategist at Invesco. “It’s not a surprise that the E.U. is not going in with the U.S. on this, and that is certainly a positive for oil, but we also have to recognize that this is changing rather quickly.”

The U.S. ban on Russian oil imports is the latest move by governments and companies around the world to squeeze Russia’s finances following its attack of Ukraine. All the penalties raise questions about how high prices will go not only for oil but also for natural gas, wheat and other commodities where the region is a major producer. That’s in turn adding more pressure to the already high inflation sweeping the world, cranking up its hold on the global economy.

It’s also making an already difficult path for the Federal Reserve and other central banks around the world even more treacherous. They’ve been hoping to raise interest rates enough to push down high inflation, but not so much as to cause a recession.

“This geopolitical risk has essentially reduced some of the Fed’s policy risk and they are far less likely to make a policy error this year,” Hooper said. “The Fed does recognize this risk to U.S. policy and will tread more carefully.”

All the uncertainty has led to particularly wild trading for commodities, where challenges for supplies are colliding with strengthening demand as the global economy comes back from its coronavirus-caused shutdown.

Trading in nickel was suspended Tuesday on the London Metal Exchange after prices doubled to an unprecedented $100,000 per metric ton.

Nickel is used mostly to produce stainless steel and some alloys, but increasingly it is used in batteries, particularly electric vehicle batteries.

Russia is the world’s third-biggest nickel producer. And the Russian mining company Nornickel is a major supplier of the high-grade nickel that is used in electric vehicles.

The yield on the 10-year Treasury note, which is used to set interest rates on mortgages and many other kinds of loans, rose to 1.84% from 1.75% late Monday.

ASX 200 expected to rise​

The Australian share market looks set to rise on Wednesday following a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% higher this morning.

Stocks closed lower Tuesday following another wobbly day of trading on Wall Street, as oil prices climbed after the U.S. banned imports from Russia.

The Nasdaq composite fell 35.41 points, or 0.3%, to 12,795.55. On Monday, it closed 20% below its record high. The Dow Jones Industrial Average fell 184.74 points, or 0.6%, to 32,632.64. It earlier swung from a loss of 238 points to a gain of 585. The S&P 500 fell 0.7% after careening between a loss of 1% and a gain of 1.8%.

 

[bigdog]

https://apnews.com/article/russia-u...siness-china-39cee10de712ec61c44fba5c688d4b33

Stocks jump most since June 2020 as oil prices fall sharply

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Stocks rallied for their biggest gain in nearly two years Wednesday as a sharp drop in oil prices eased fears that inflation was about to get worse around the globe.

The S&P 500 climbed 2.6%, its biggest increase since June 2020. The Dow Jones Industrial Average rose 2% and the Nasdaq composite jumped 3.6%. The gains snapped a four-day losing streak for the major indexes, though they remained on pace for weekly losses.

The market turnaround came as the price of U.S. crude oil dropped 12%, the most since November, bringing relief after a sharp runup in crude prices since Russia invaded Ukraine. Brent, the international oil standard, fell 13.2%, its biggest fall in almost two years.

Big swings have been jerking markets around in recent weeks as investors grope to guess how much economic damage Russia’s invasion of Ukraine will do. The swings have struck not only day-to-day but also hour-to-hour, with some days seeing several big reversals.

The chaotic movements are likely only to continue with uncertainty so high about the war in Ukraine and its ultimate economic fallout. The region is key to markets because it’s a major producer of oil, wheat and other commodities, whose prices have spiked on worries about disruptions to supplies.

“It’s one day, so it’s hard to really draw any type of conclusions,” said Keith Buchanan, senior portfolio manager at Globalt Investments. “Markets had their backs against the wall, kind of expecting the worst.”

Crude oil prices tumbled and the slide accelerated amid reports that the United Arab Emirates will urge fellow OPEC members to boost production and ease supply concerns. A barrel of U.S. crude oil settled at $108.70. Brent settled at $111.14.

Stocks once again moved in the opposite direction of oil prices Wednesday, with inflation such a dominant worry. Analysts said bargain hunters may be scooping up stocks after concerns about a slowing economy coupled with high inflation triggered their steep recent slide. Many of those buyers appear to be smaller-pocketed, “retail” investors trading on their phones and laptops. And they’re often buying shares that big professional investors are selling.

Last week saw record selling of U.S. stocks by hedge funds, strategist Jill Carey Hall wrote in a recent BofA Global Research report. Retail investors and institutional investors were net buyers.

The moves by retail investors may be a result of people worrying about missing out on any potential rebound. A “buy-the-dip” strategy, where drops in stocks were seen mainly as opportunities to buy low, was very successful following the 2020 crash caused by the coronavirus. The S&P 500 kept climbing from that plummet without a 10% drop until just recently.

Big recent moves for markets also show that prices already reflect a lot of pessimism, with crude oil prices up more than 45% so far in 2022. That may be why crude prices actually receded on Tuesday, after President Joe Biden announced a U.S. ban on imports of Russian oil. A ban will mean disruptions to supplies, but oil traders may already have accounted for it when they briefly pushed the price of U.S. crude above $130 a day before the announcement.

Gold prices and a measure of nervousness among stock investors on Wall Street also eased.

All told, the benchmark S&P 500 rose 107.18 to 4,277.88. The Dow added 653.61 to 33,286.25, and the Nasdaq gained 459.99 to 13,255.55. The Russell 2000 index of smaller company stocks rose 53.28, or 2.7%, to 2,016.29.

European stocks rallied even more than the U.S. market. Germany’s DAX jumped 7.9% and France’s CAC 40 rose 7.1%.

European nations face an even greater shock than the U.S. from rising energy prices because of Russia’s invasion of Ukraine. That could result in the European Union taking greater action to shore up its economy.

The result could be more stimulus and more caution from central banks on interest rate increases, said Stephen Dover, chief market strategist and head of Franklin Templeton Investment Institute.

“Whereas the U.S. will have the wind in its face as stimulus falls, Europe may actually have the wind at its back.”

On Wall Street, the gains were broad-based, with nearly 85% of the stocks in the S&P 500 rising, led by technology companies. Some of the strongest moves came from airlines, travel companies and other stocks that bounced back from steep drops on worries about fuel costs and the economy.

Among Wednesday’s few decliners were oil-related companies, which lost momentum following big leaps this year on the back of rising crude prices. Halliburton fell 5.2%, though it’s still up 52% for 2022.

Such swings have been particularly wide in markets for commodities because Russia is the No. 2 oil exporter and the No. 3 supplier of nickel, which is used in electric car batteries, stainless steel and other products. Russia and Ukraine also are among the biggest global sellers of wheat.

Less than a week after removing from Russia its list of nations deemed a safe place to invest, Fitch cut its credit rating on the nation further into junk status and warned of an imminent default on sovereign debt.

Treasury yields climbed as an anticipated increase in interest rates by the Federal Reserve nears. The Fed’s policy-making committee is meeting next week, and the wide expectation is that it will vote to raise its benchmark short-term rate by a quarter of a percentage point. It would be the first such increase since 2018.

The Fed is facing a delicate and increasingly tough task as it moves to raise rates through 2022, which tends to slow the economy. The central bank wants to pull rates high enough to push down inflation, which is at its highest level in generations. But it doesn’t want to raise them so much that it causes a recession.

“There’s more uncertainty about what the Fed is going to do now than just a few weeks ago,” Dover said.

The yield on the 10-year Treasury rose to 1.94% from 1.86% late Tuesday.

Bitcoin rallied 8% after Biden signed an executive order on government oversight of cryptocurrency. Crypto players have increasingly been saying they welcome increased regulation, and they want to have a hand in shaping it.

ASX 200 expected to rise​

The Australian share market looks set to rise again on Thursday following a stunning night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning.

Stocks rallied for their biggest gain in nearly two years Wednesday as a sharp drop in oil prices eased fears that inflation was about to get worse around the globe.

The S&P 500 climbed 2.6%, its biggest increase since June 2020. The Dow Jones Industrial Average rose 2% and the Nasdaq composite jumped 3.6%. The gains snapped a four-day losing streak for the major indexes, though they remained on pace for weekly losses.

The market turnaround came as the price of U.S. crude oil dropped 12%, the most since November, bringing relief after a sharp runup in crude prices since Russia invaded Ukraine. Brent, the international oil standard, fell 13.2%, its biggest fall in almost two years.

 

[bigdog]

https://apnews.com/article/russia-u...rkets-europe-4500b6bb2b249deb79699f56d3dd619b

Stocks slip, oil prices turn lower as uncertainty continues

By STAN CHOE and ALEX VEIGA

Technology companies led stocks lower Thursday after another day of choppy trading on Wall Street as global markets keep swinging on uncertainty about where inflation, interest rates and the global economy are heading.

The S&P 500 fell 0.4%, its fifth drop in the last six days. The slide marks another reversal for U.S. stocks, which just a day earlier surged to their biggest gain since June 2020 when a tumble for oil prices seemed to take some pressure off the world’s high inflation.

Oil prices had their own swings Thursday, with a barrel of U.S. crude jumping as much as 5.7%, before flip-flopping between gains and losses. It settled at $106.02, down 2.5%. Recent surges for energy prices have raised the risk that the economy is set to struggle under a toxic cocktail of stagnating growth and persistently high inflation.

Oil’s back-and-forth moves were just some of the waves of reports that buffeted markets worldwide. The European Central Bank said high inflation will push it to wrap up its bond-buying program meant to boost its economy faster than expected. In the U.S., a report showed that consumer prices leaped 7.9% in February from a year earlier. It’s the sharpest spike since 1982, though the reading was largely within expectations.

Altogether, the forces caused a reversal for many of the market’s moves from a day before.

The S&P 500 dropped 18.36 points to 4,259.52. The benchmark index is now 11.2% below the all-time high it set early this year.

The Dow Jones Industrial Average fell 112.18 points, or 0.3%, to 33,174.07, while the tech-heavy Nasdaq composite slid 125.58 points, or 0.9%, to 13,129.96.

Smaller company stocks held up better than the broader market. The Russell 2000 fell 4.62 points, or 0.2%, to 2,011.67.

European stocks were hit even harder, with Germany’s DAX losing 2.9% and France’s CAC 40 down 2.8%. Asian stocks mostly rose.

Such swings have become common in recent weeks, not only day-to-day but hour-to-hour, after Russia’s invasion of Ukraine raised worries about how high prices will go for oil, wheat and other commodities produced in the region. Markets were already on edge before the war because high inflation is pushing central banks to raise interest rates for the first time in years and halt programs launched to support the global economy after the pandemic struck. Many investors see a recession as still unlikely, but they say the risk of one is rising.

“Until investors can get clarity on some of these topics, we’re going to continue to have volatile markets,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

Analysts said Thursday’s U.S. inflation report, while eye-popping, likely won’t have much effect on markets. The 7.9% leap was exactly what economists were forecasting, and it did not include the most recent surge for oil and gasoline prices following Russia’s invasion of Ukraine. If anything, it may have offered some relief because it didn’t hit the 8% threshold that could feel even worse.

Many investors said the report likely won’t change anything for the Federal Reserve, which meets next week to vote on interest rates. The wide expectation is that it will raise its key short-term rate by a quarter of a percentage point, which would be the first since 2018. Higher rates slow the economy, and the Fed is trying to raise them enough to tamp down inflation but not so much that it causes a recession.

“To an extent, this inflation report doesn’t matter much,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

“The Fed will likely acknowledge the higher food and energy costs, but also acknowledge that there’s little to nothing that monetary policy can do about it,” he said as oil and wheat prices have surged following Russian President Vladimir Putin’s decision to invade Ukraine. “Monetary policy can’t get Putin to back down.”

Brent crude, the international standard, fell 1.6% to $109.33 per barrel. Both it and U.S. benchmark oil are up more than 40% for 2022 so far, though they remain below the peaks they hit earlier this week. U.S. oil briefly topped $130.

The yield on the 10-year Treasury, which tracks expectations for inflation and economic growth, wavered immediately after the inflation report’s release. It rose to 2% from 1.94% late Wednesday.

The two-year Treasury yield, which moves more on expectations of what the Federal Reserve will do with short-term rates, rose to 1.71% from 1.68%.

On Wall Street, the losses were widespread. Big tech companies were some of the heaviest weights on the market. Chip and software companies slumped sharply. Micron Technology fell 4.7% and Advanced Micro Devices slid 4.1%

On the winning side was Amazon, which climbed 5.4% after it announced a 20-for-1 stock split and approved a program to buy back up to $10 billion of its stock.

Continued market volatility is likely in the days ahead as the conflict rages in Ukraine.

“Markets seem to have latched onto a couple of slightly less dismal clues as an excuse to rally hard,” ING economists said in a report following jumps for stocks on Wednesday and early Thursday. “The basis for that optimism — it’s actually pretty thin.”

ASX 200 expected to fall​

The Australian share market looks set to end the week in the red following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning.

Technology companies led stocks lower Thursday after another day of choppy trading on Wall Street as global markets keep swinging on uncertainty about where inflation, interest rates and the global economy are heading

The S&P 500 dropped 18.36 points to 4,259.52. The benchmark index is now 11.2% below the all-time high it set early this year.

The Dow Jones Industrial Average fell 112.18 points, or 0.3%, to 33,174.07, while the tech-heavy Nasdaq composite slid 125.58 points, or 0.9%, to 13,129.96.

 

[bigdog]

https://apnews.com/article/russia-ukraine-biden-business-asia-tokyo-67e3a3436481e92a7ef577d046dd6b16

Stocks fall again as uncertainty over Ukraine war persists

By STAN CHOE and ALEX VEIGA

Stocks gave up early gains and closed broadly lower Friday, capping a turbulent week of trading on Wall Street as uncertainty about the war in Ukraine and surging inflation continue to roil markets.

The S&P 500 fell 1.3% after having been up 0.7% in the early going. The benchmark index marked its fourth losing week in the last five, even though it surged in the middle of the week and had its best day since the summer of 2020. The Dow Jones Industrial Average dropped 0.7% and Nasdaq composite slid 2.2%. Both also posted a weekly loss.

European stocks fared better, closing solidly higher. Oil prices ended 3.1% higher after flip-flopping earlier.

The moves are the latest swings for global markets, which have been rocked by dramatic hour-to-hour reversals in prior weeks as investors struggle to guess how high Russia’s invasion of Ukraine will send prices of oil, wheat and other commodities produced in the region. That’s raising the risk the economy may struggle under a toxic combination of persistently high inflation and stagnating growth. The Federal Reserve is expected to raise interest rates at its meeting next week.

Despite some positive moves by stocks early Friday, uncertainty about the next developments in the conflict in Ukraine and what the Fed will do likely kept investors in a selling mood heading into the weekend, said Willie Delwiche, investment strategist at All Star Charts.

“This remains a headline-driven market,” Delwiche said. “We’re in this environment where you get these exaggerated day to day swings, but you don’t make any progress.”

Early Friday, before Wall Street opened, the pendulum was swinging toward optimism. European stocks and U.S. stock futures rose abruptly after comments from Russian President Vladimir Putin that some analysts saw as surprisingly optimistic. Putin cited “certain positive developments” in negotiations with Ukraine, though he didn’t offer any details.

The S&P 500 opened with a 0.7% gain, but it quickly flipped to a loss after a reading on sentiment among U.S. consumers sank more than economists expected. Household expectations are rising for high inflation to remain in the near term, causing unease. The S&P ended down 55.21 points at 4,204.31.

The Dow fell 229.88 points to 32,944.19, while the Nasdaq fell 286.15 points to 12,843.81 after losing an early gain of 0.8%. The Russell 2000 index of smaller companies fell 32 points, or 1.6%, to 1,979.67.

More swings are likely ahead for markets because so much uncertainty remains about the war in Ukraine and inflation. President Joe Biden announced Friday that along with the European Union and the Group of Seven countries, the U.S. will revoke “most favored nation” trade status for Russia. The move allows for tariffs on Russian imports.

Amid all the uncertainty, U.S. stocks remain about 10% below their peak from earlier this year, while crude oil prices remain more than 40% higher for 2022 so far.

A barrel of U.S. crude oil rose 3.1% to settle at $109.33. It briefly topped $130 earlier this week. Prices have sloshed around as worries about disrupted supplies joust with hopes for peace and the possibility that countries outside Russia could boost their production. Brent crude, the international standard, rose 3.1% to settle at $112.67 per barrel.

Markets were already on edge before Russia’s invasion, as central banks are set to raise interest rates and remove support for the economy put in place after the pandemic. The Federal Reserve and other central banks hope to stamp out the highest inflation in generations, though they also risk causing a recession if they raise rates too high or too quickly.

The wide expectation is for the Federal Reserve to raise its key short-term interest rate by a quarter of a percentage point next week, which would be the first increase since 2018. The yield on the 10-year Treasury has climbed back to around 2% to return to where it was in February, before worries about the war in Ukraine sent it tumbling below 1.70%.

Inflation has surged high enough that politicians around the world know they may be in trouble because of it.

Brazil’s state-run oil company Petrobras on Friday increased its prices of fuels sold to its distributors by as much as 25%, citing the war between Russia and Ukraine, as official data showed inflation accelerated in February.

The company said in a statement announcing the increase the prior day that for weeks it refrained from passing on costs, but consistently high oil prices forced the adjustment to ensure supply to the Brazilian market.

In the U.S., a report on Thursday showed prices at the consumer level leaped 7.9% last month from the prior year, the hottest inflation rate since 1982. It’s likely to get worse in the near term due to oil’s surge following the war and all the financial penalties the U.S. and allies imposed on Russia.

Biden has said he wants to limit the economic pain for U.S. households but acknowledged that “defending freedom” incurs costs.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to start the week on a positive note. This is despite a poor finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% higher this morning.

Stocks gave up early gains and closed broadly lower Friday, capping a turbulent week of trading on Wall Street as uncertainty about the war in Ukraine and surging inflation continue to roil markets.

On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.3%, and the Nasdaq tumbled 2.2%.

 

[bigdog]

https://apnews.com/article/russia-u...na-hong-kong-758fd68186989e3d9c50861975e618bd

Stocks sway lower and crude oil slides to $100 per barrel

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Stocks lost more ground, crude oil prices fell and bond yields rose sharply Monday as anxiety over the war in Ukraine and an upcoming Federal Reserve meeting on interest rates keep global financial markets on edge.

The S&P 500 gave up an early gain and closed 0.7% lower after another choppy day of trading on Wall Street. The Dow Jones Industrial Average closed essentially flat and the Nasdaq composite fell 2%. The pullback came as the yield on the 10-year Treasury touched its highest level since the summer of 2019.

Elsewhere around the world, markets pulled in opposing directions. European markets climbed, while stocks fell sharply in Hong Kong after the neighboring city of Shenzhen was ordered into a shutdown to combat China’s worst COVID-19 outbreak in two years. Oil prices tumbled to take some pressure off the high inflation sweeping the world, with a barrel of U.S. crude falling toward $100 after touching $130 last week.

Markets have careened in recent weeks amid uncertainty about whether the economy may be heading for a toxic combination of stagnating growth and persistently high inflation. Russia’s invasion of Ukraine has caused prices to surge for oil, wheat and other commodities produced in the region. That in turn has led to sharp day-to-day and hour-to-hour reversals across markets, as expectations for worsening inflation rise and fall.

On Monday, negotiators from Russia and Ukraine met over video conference for a new round of talks, after the two sides expressed some optimism in the past few days. The talks ended without a breakthrough after several hours. The negotiators took “a technical pause,” Ukrainian presidential aide Mykhailo Podolyak said, and planned to meet again Tuesday.

Investors were already uneasy before the war began because central banks around the world are preparing to shut off the stimulus they pumped into the global economy after the pandemic struck. The Federal Reserve’s policymaking committee is meeting this week, for example.

“You’re seeing pretty muted trading today and people aren’t going to get too short or long ahead of the Fed,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “We expect the market to stay pretty range-bound until the Fed meeting on Wednesday.”

The wide expectation is that it will raise its key short-term interest rate by a quarter of a percentage point on Wednesday. It would be the first increase since 2018, and it would pull the federal funds rate off its record low of nearly zero.

“Finally, the Fed gets moving,” economists at BofA Global Research wrote in a report. Besides raising short-term rates, the Fed may also give more details about how it will put into reverse the massive bond-buying program it ran during the pandemic to keep long-term rates low, the economists wrote. The central bank bought trillions of dollars of bonds to shower the economy with cash.

Uncertainty about the next developments in the conflict in Ukraine and what the Fed will do this week has opened the market to daily swings as investors try to position themselves for whatever comes next. Last week, the S&P 500 marked its fourth losing week out of the last five.

On Monday, the benchmark index fell 31.20 points to 4,173.11, while the Dow inched up 1.05 points after wobbling between small gains and losses earlier, leaving it essentially unchanged at 32,945.24. The Nasdaq fell 262.59 points to 12,581.22.

Small company stocks also fell. The Russell 2000 index slid 37.95 points, or 1.9%, to 1,941.72.

The Fed’s moves this week are likely to be the first in a long march to raise interest rates and slow the economy enough to stamp out the highest inflation to hit the United States in 40 years.

The yield on the 10-year Treasury jumped to 2.14% from 2.00% late Friday after earlier touching its highest level since July 2019. The two-year yield, which moves more on expectations for Fed policy changes, rose to 1.86% from 1.75%.

The Fed faces twin dangers, though. If it raises rates too quickly or too high, it would cause a recession. If it’s too passive, high inflation could become more permanent.

The war in Ukraine makes the balancing act even more difficult. It’s pushing inflation higher by raising prices for everything from nickel to natural gas. And it’s threatening to pull down on economic growth. That’s why the S&P 500 is coming off its fourth weekly loss in the last five, while crude oil prices are up by roughly a third for 2022 so far.

Oil prices gave back a lot of those gains on Monday, though, as coronavirus worries came back to the fore. A barrel of U.S. oil slid 5.8% to settle at $103.01. Brent crude, the international standard, fell 5.1% to settle at $106.90.

Spreading virus outbreaks in China could hit demand for energy and compound worries over supply chain disruptions both from the pandemic and from the war.

“Crude oil is going to move in this pretty wide range until we get more clarity on Ukraine,” Hatfield said.

A vital manufacturing and technology hub of 17.5 million people, Shenzhen is home to some of China’s most prominent companies, including telecom equipment maker Huawei Technologies Ltd., electric car brand BYD Auto, Ping An Insurance Co. and Tencent Holding, operator of the popular WeChat message service.

Foxconn, supplier to Apple and other electronics brands, said it had suspended factory lines in Shenzhen due to the shutdown. In a notice to Taiwan’s stock exchange, its listed company Hon Hai Precision Industry, the world’s largest contract manufacturing company, said it did not expect the suspension to have a major impact on its business.

The Hang Seng index in Hong Kong fell 5%, with the exchange’s tech index dropped 11%. Stocks in Shanghai lost 2.6%.

Roughly 55% of stocks in the S&P 500 fell, with technology companies weighing down the benchmark index the most. Apple fell 2.7% and chipmaker Nvidia slid 3.5%.

Nielsen soared 30.5% for the biggest gain in the S&P 500 following a published report saying a group of private equity firms are in advanced talks to buy the TV-ratings company.

ASX 200 expected to sink​

The Australian share market looks set to give back the majority of yesterday’s gains on Tuesday. This follows a volatile start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1.05% lower.

NYSE stocks lost more ground, crude oil prices fell and bond yields rose sharply Monday as anxiety over the war in Ukraine and an upcoming Federal Reserve meeting on interest rates keep global financial markets on edge.

On Monday, the S&P 500 index fell 31.20 points to 4,173.11, while the Dow inched up 1.05 points after wobbling between small gains and losses earlier, leaving it essentially unchanged at 32,945.24. The Nasdaq fell 262.59 points to 12,581.22.

The S&P 500 gave up an early gain and closed 0.7% lower after another choppy day of trading on Wall Street. The Dow Jones Industrial Average closed essentially flat and the Nasdaq composite fell 2%. The pullback came as the yield on the 10-year Treasury touched its highest level since the summer of 2019.

 

[bigdog]

https://apnews.com/article/russia-u...ness-bangkok-55d48b98423517c5d75a2d83a03f1f67

Stocks rally on Wall Street as oil prices keep falling

By STAN CHOE and ALEX VEIGA

Technology companies led stocks broadly higher on Wall Street Tuesday, as oil prices slid sharply for the second day and inflation worries ebbed. The market rally came a day ahead of the Federal Reserve’s highly anticipated interest rate policy update.

The S&P 500 rose 2.1%, ending a three-day losing streak, after a report showed inflation’s rapid acceleration paused at the wholesale level last month. The Dow Jones Industrial Average rose 1.8% and the tech-heavy Nasdaq composite rose 2.9%.

The wilder action was in oil and Asian stock markets, where tightened anti-COVID measures in China are raising worries about demand for energy and about disruptions to manufacturing and global trade. Oil prices tumbled more than 6%, taking some pressure off the world’s high inflation, and a barrel of U.S. crude fell below $97 after starting the week above $109. Stocks in Hong Kong sank more than 5% for a second straight day after the neighboring city of Shenzhen was ordered into a shutdown.

Renewed COVID-19 worries come on top of a lengthy list of concerns for markets, which have caused wild hour-to-hour swings in recent weeks. The war in Ukraine catapulted prices for oil, wheat and other commodities the region produces. That’s raising the threat that already high inflation will persist and combine with a potentially stagnating economy.

Some cautious optimism about the latest round of talks between Russia and Ukraine may have helped put traders in a buying mood. Ukrainian presidential aide Ihor Zhovkva said discussions via video held by representatives of the two nations Tuesday were “more constructive,” noting that Russia has stopped airing its demands for Ukraine to surrender.

“If ever so slight, at least there’s still building optimism regarding Ukraine, combined with optimism regarding inflation, oil in particular, and optimism that the Fed will not be more hawkish than is already built into the market,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 89.34 points to 4,262.45. The Dow gained 599.10 points to 33,544.34, and the Nasdaq rose 367.40 points to 12,948.62.

Smaller company stocks also gained ground. The Russell 2000 index rose 27.25 points, or 1.4%, to 1,968.97.

Central banks around the world are preparing to pull the plug on the support they poured into the global economy after the pandemic struck. The Fed began a two-day meeting on interest rates, and the wide expectation is that it will announce on Wednesday an increase of 0.25 percentage points to its key short-term rate.

That would be the first increase since 2018, pulling it off its record low of nearly zero, and likely the first in a series of rate hikes. The Fed is trying to slow the economy enough to tamp down the high inflation sweeping the country, but not so much as to trigger a recession.

Inflation is already at its highest level in generations, and the most recent numbers don’t even include the surge in oil prices that occurred after Russia invaded Ukraine.

Data released Tuesday showed inflation was still very high at the wholesale level last month, but at least it wasn’t accelerating. Producer prices were 10% higher in February from a year earlier, the same rate as in January. On a month-to-month basis, inflation rose 0.8% in February from January, versus forecasts for 0.9%. That’s a slowdown from January’s 1.2% month-over-month inflation.

So the numbers are still very high and will keep the Fed on track to raise rates on Wednesday, economists said, but at least they weren’t worse than expected.

A separate survey by the Federal Reserve Bank of New York showed that manufacturing in the state declined for the first time since early in the pandemic. A weakening economy could make the Federal Reserve less aggressive about raising rates.

Treasury yields dipped immediately after the reports, then edged higher by afternoon. The yield on the 10-year Treasury rose to 2.15% from 2.14% late Monday. The two-year yield, which moves more on expectations for Fed policy changes, fell to 1.86% from 1.87%.

Also helping to pull down yields were the tumbling oil prices. A barrel of U.S. crude dropped 6.4% to settle at $96.44. It had briefly topped $130 last week when worries about disruptions to supplies because of the war in Ukraine were at their height. Brent crude, the international standard, fell 6.5% to settle at $99.91 per barrel.

A reprieve on fuel prices helped a wide variety of stocks, and the majority of companies in the S&P 500 were rising. Airlines led the way after several raised their forecasts for revenue this quarter. American Airlines, Delta Air Lines and United Airlines all soared 8% or more.

Tech and other high-growth stocks also recovered some of their earlier losses as Treasury yields fell. Higher interest rates can hurt such stocks more than others because they’re seen as more expensive relative to their earnings.

In overseas stock markets, European indexes were down modestly. Stocks in Shanghai slumped 5% and Hong Kong’s Hang Seng lost 5.7% despite the release of data showing strong increases in Chinese retail sales, industrial production and investment in January-February. It followed a decision by China’s central bank not to ease interest rates to spur economic growth.

Shares in Hong Kong have sunk to near six-year lows after the neighboring city of Shenzhen was ordered into a shutdown to combat China’s worst COVID-19 outbreak in two years.

“Fears continue to dog stock markets that lockdowns could spread, which would severely impact China’s growth,” Jeffrey Halley of Oanda said in a commentary.

In other developments, the London Metal Exchange said trading in nickel will resume Wednesday, just over a week after it was suspended when the price of the metal skyrocketed to over $100,000 per ton.

The announcement followed a notice from Tsingshan Holding Group, a Chinese metals giant, that it had struck a deal with its creditors on a “standstill arrangement” such that the banks would not make margin calls or close out their positions against the company while it is resolving its nickel margin and settlement requirements.

Russia is the world’s No. 3 producer of nickel. Its price and that of many other commodities has surged on speculation over possible disruptions to supplies as Russia contends with widening economic sanctions following its invasion of Ukraine.

ASX 200 expected to rise​

It looks set to be a better day for the Australian share market on Wednesday following a strong night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning.

Technology companies led stocks broadly higher on Wall Street Tuesday, as oil prices slid sharply for the second day and inflation worries ebbed. The market rally came a day ahead of the Federal Reserve’s highly anticipated interest rate policy update.

The S&P 500 rose 2.1%, ending a three-day losing streak, after a report showed inflation’s rapid acceleration paused at the wholesale level last month. The Dow Jones Industrial Average rose 1.8% and the tech-heavy Nasdaq composite rose 2.9%.

 

[bigdog]

https://apnews.com/article/russia-u...-asia-europe-78b45cd54ec5594ecd289d97c3d6b923

Stocks, yields end higher after Fed raises interest rates

By DAMIAN J. TROISE and ALEX VEIGA

Stocks reversed an afternoon fade and closed broadly higher Wednesday after the Federal Reserve announced its first interest rate hike since 2018.

As Wall Street largely anticipated, the central bank announced it was increasing its key short-term rate by 0.25 percentage points. The Fed, which has kept its rate near zero since the pandemic recession struck two years ago, also signaled potentially up to seven rate hikes this year.

The move marks a shift in policy by the Fed away from maintaining ultra-low interest rates as it seeks to tame inflation, which is running at the highest level since the early 1980s. Rate hikes eventually result in higher loan rates for many consumers and businesses.

Stocks lost most of their early gains and bond yields rose sharply shortly after the 2 p.m. Eastern release of the Fed’s latest policy statement. The indexes wavered as Fed Chair Jerome Powell delivered remarks during a press conference before surging in the final hour of trading.

The S&P 500 rose 2.2%, the Dow Jones Industrial Average gained 1.5% and the Nasdaq composite climbed 3.8%, its biggest gain since November 2020.

Bond yields rose sharply after the Fed’s announcement. The yield on the 10-year Treasury rose to 2.20%, then hovered at 2.17% by late afternoon. It was at 2.15% late Tuesday. The 2-year Treasury yield rose to 2% then eased back to 1.94%, still a big move from 1.85% a day earlier.

“The market got what it expected,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “Interest rates need to be higher. Inflation needs to be under control, and the risk to everything is a lot greater from high inflation than it is from high interest rates.”

The Fed is trying to slow the economy enough to tamp down the high inflation sweeping the country, but not so much as to trigger a recession. It is part of a larger movement by central banks around the world to pull the plug on the support they poured into the global economy after the pandemic struck.

Inflation has hit its highest level in generations as the global economy recovers. Economists worry that could eventually curtail spending and hurt growth. The latest retail sales report from the Commerce Department shows that Americans slowed their spending in February on gadgets, home furnishings and other discretionary items as higher prices for food, gasoline, and shelter are eating up more of their wallet.

In remarks after the release of the central bank’s statement, Powell noted that before the Russian invasion of Ukraine he had expected inflation would stabilize within the first three months of this year. He now believes inflation will come down in the second half of the year.

“We are now seeing short-term upward inflation in oil prices, other commodities prices,” he said. “You’re seeing supply chains around shipping and lots of countries and companies not wanting to touch Russian goods —- that means more tangled supply chains.”

The S&P 500 rose 95.41 points to 4,357.86. The Dow added 518.76 points to 34,063.10. The Nasdaq gained 487.93 points to 13,436.55.

Small company stocks also notched solid gains. The Russell 2000 index rose 61.75 points, or 3.1%, to 2,030.72.

A list of concerns including inflation have made for volatile markets over the last few weeks. Stocks have been swaying sharply on a daily, sometimes hourly basis. That volatility will likely remain until investors get a better sense of where the economy is headed.

“It’s not uncommon for hiking cycles to spook stocks,” said Gargi Chaudhuri, head of iShares Investment Strategy Americas. “But as the path forward becomes clearer, most sectors in the S&P 500 index muster positive returns in the year that follows the first hike.”

Even so, the combination of higher rates and inflation represent a risk for the economy, noted Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

“The stock market is vulnerable to the dual threats of too-high inflation, which will put a damper on corporate profits and consumer demand, and too-high interest rates, which could cause a recession,” he said.

Oil prices have mostly surged since late February amid concerns that the conflict in Ukraine will squeeze energy markets. Benchmark U.S. crude fell 1.5%, a relatively subdued move considering the gigantic swings it has made recently. Prices are up nearly 30% for the year, and the recent surge has pushed gas prices in the U.S. to record highs. That has increased concerns that inflation could worsen.

Technology stocks, banks, retailers and other companies that rely on consumer spending accounted for much of the S&P 500′s gains as investors shifted money into sectors that are considered riskier. Microsoft rose 2.9%, JPMorgan Chase added 4.5% and Amazon.com gained 3.9%. Energy companies and traditionally safe-play stocks, such as utilities, lagged the broader market.

ASX 200 expected to rise again​

The Australian share market is poised to rise again on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 1% higher this morning.

Stocks reversed an afternoon fade and closed broadly higher Wednesday after the Federal Reserve announced its first interest rate hike since 2018.

As Wall Street largely anticipated, the central bank announced it was increasing its key short-term rate by 0.25 percentage points. The Fed, which has kept its rate near zero since the pandemic recession struck two years ago, also signaled potentially up to seven rate hikes this year.

The S&P 500 rose 2.2%, the Dow Jones Industrial Average gained 1.5% and the Nasdaq composite climbed 3.8%, its biggest gain since November 2020.

The S&P 500 rose 95.41 points to 4,357.86. The Dow added 518.76 points to 34,063.10. The Nasdaq gained 487.93 points to 13,436.55.

 

[bigdog]

https://apnews.com/article/russia-u...-sydney-asia-5d6f384316252d30b70ede403b899f81

US stocks extend rally even as oil climbs back above $100

By STAN CHOE and ALEX VEIGA

Wall Street is extending a rally into a third day Thursday even as oil prices jump back above $100, upping the pressure on inflation.

The S&P 500 was 0.8% higher, with 75% of the stocks in the benchmark index rising. That follows gains of more than 2% in each of the prior two days for its best back-to-back performance in nearly two years.

The Dow Jones Industrial Average was up 246 points, or 0.8%, at 34,307, as of 2:35 p.m. Eastern time, and the Nasdaq composite was 0.9% higher. All three indexes had wavered between small gains and losses in the morning following better-than-expected reports on the U.S. economy.

They’re the latest swings for markets as investors struggle to handicap what will happen to the economy and the world’s already high inflation because of Russia’s invasion of Ukraine, higher interest rates from central banks around the world and renewed COVID-19 worries in various hotspots.

A barrel of U.S. crude oil jumped 7.9% to $102.59, while Brent crude, the international standard, leaped 8.6% to $106.43 per barrel. Such moves have become the norm recently, as prices careen on uncertainties about both supplies of and demand for oil. After briefly topping $130 early last week, a barrel of U.S. crude went almost all the way down to $94 on Wednesday.

Dribbles of news about the state of negotiations between Russia and Ukraine have caused many of the sharp reversals. So too recently have worries about economic shutdowns in China because of surges in COVID-19 infections, which could hit demand for energy.

On Thursday, the Chinese government said companies in Shenzhen, a major business center, will be allowed to reopen while efforts to contain coronavirus outbreaks progress. Their earlier closures had rattled financial markets. That followed a promise on Wednesday to “invigorate the economy” with market-friendly policies.

The Hang Seng stock index in Hong Kong, which neighbors Shenzhen, surged 7% to continue a wild run. Earlier this week, it went from a 5% drop to a 5.7% plunge to a 9.1% surge.

All the frenetic movements are coming amid uncertainty about whether the economy is heading for a painful combination of stagnating growth and persistently high inflation.

Behind it all, the Federal Reserve and other central banks are trying to slow the economy enough to snuff out high inflation but not so much as to cause a recession. The Bank of England has been one of the most aggressive, and it raised its key interest rate on Thursday for the third time since December. A day earlier, the Fed raised its key rate for the first time since 2018.

It’s a delicate dance, and the surge in U.S. stock prices on Wednesday seems to indicate some investors see it succeeding.

“Far from choking off growth, the start of the Fed tightening cycle seems to have been greeted warmly,” Chris Turner and Francesco Pesole of ING said in a report. “Investors are cheering measures to address high inflation.”

A wave of better-than-expected reports on the U.S. economy Thursday may also have helped. Fewer workers applied for unemployment claims last week, and builders broke ground on more homes last month than economists expected. A third report, meanwhile, showed that manufacturing in the mid-Atlantic region was stronger than expected. That potentially eased some of the worry from an earlier report that showed the weakest activity in New York state since early in the pandemic.

A fourth report said industrial production slowed last month but still rose as much as economists expected.

Energy stocks jumped to some of the U.S. stock market’s biggest gains on the back of the resurgent oil prices, helping to keep the S&P 500 as stable as it was.

Occidental Petroleum surged 8.4% after Berkshire Hathaway, the company run by famed investor Warren Buffett, upped its stake in the company. Cheniere Energy rose 1.8% after the U.S. Department of Energy gave it permission for additional sales of liquefied natural gas to every country entirely in Europe as they seek to move away from Russian energy products.

More expensive fuel costs hit travel companies, though, and airlines were some of the heaviest weights on the market. Delta Air Lines lost 0.6%. Cruise operator Carnival fell 1.7%.

Treasury yields were mixed. The yield on the 10-year Treasury fell to 2.18% from 2.19% late Wednesday.

ASX 200 expected to rise​

The Australian share market looks set to end the week on a positive note following a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher this morning.

Wall Street is extending a rally into a third day Thursday even as oil prices jump back above $100, upping the pressure on inflation.

The S&P 500 was 0.8% higher, with 75% of the stocks in the benchmark index rising. That follows gains of more than 2% in each of the prior two days for its best back-to-back performance in nearly two years.

The Dow Jones Industrial Average was up 246 points, or 0.8%, at 34,307, as of 2:35 p.m. Eastern time, and the Nasdaq composite was 0.9% higher. All three indexes had wavered between small gains and losses in the morning following better-than-expected reports on the U.S. economy.

 

[bigdog]

https://apnews.com/article/russia-u...covid-health-e889079170862ab553bacf41c9fc513a

Stocks extend rally, notching biggest weekly gain since 2020

By DAMIAN J. TROISE and ALEX VEIGA

Stocks recovered from an early slide on Wall Street and closed broadly higher Friday, notching their biggest weekly gain in 16 months.

The S&P 500 rose for the fourth straight day, adding 1.2% to a streak that included back-to-back days with gains of 2%. The Dow Jones Industrial Average rose 0.8%, while the Nasdaq composite rose 2%. The three indexes each had their best week since November 2020.

This week’s market rally came as Wall Street drew encouragement from the Federal Reserve, which announced its first interest rate hike since 2018 and signaled several more to come. The move, which had been widely expected for months by the market, sends a message that the central bank is focused on fighting the highest inflation in decades. Fed Chair Jerome Powell also stressed confidence that the economy is strong enough to withstand higher interest rates.

The Fed’s action and economic outlook helped give markets a better sense of what to expect going forward, said Bill Northey, senior investment director at U.S. Bank Wealth Management.

“This resulted, to a certain extent, in a relief in the stock market that has ridden that over the course of the past several days,” he said.

Stocks also got a boost as the price of U.S. crude oil, which briefly topped $130 a barrel last week amid concerns that the conflict in Ukraine will squeeze energy markets, eased briefly below $94 a barrel on Wednesday and has since been hovering below $110 a barrel.

The S&P 500 rose 51.45 points to 4,463.12, bringing its weekly gain to 6.2%. The Dow gained 274.l7 points to 34,754.93, and the Nasdaq added 279.06 points to 13,893.84.

Smaller company stocks also gained ground. The Russell 2000 index rose 21.12 points, or 1%, to 2,086.14.

The broader market has been volatile over the last few weeks as investors consider a number of concerns including inflation and Russia’s invasion of Ukraine. Major indexes are down for the year in a sharp reversal from solid gains over the last several years.

“That macro picture is not going to change, it’s going to take weeks and months,” said Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management. “Nothing in the past few days is going to alter that.”

Russia’s invasion Ukraine has weighed heavily on markets as investors try to gauge how the conflict could impact global economic growth. Markets in Europe have been particularly sensitive to the war and were mostly lower on Friday. Oil prices have been extremely volatile and U.S. benchmark crude oil remains above $100. Energy prices were relatively stable on Friday, with U.S. crude oil settling at $104.70 per barrel and Brent crude, the international standard, settling at $107.93 per barrel.

The ongoing war in Ukraine continues to drive sentiment after Ukrainian President Volodymyr Zelenskyy called for more help for his country after days of bombardment of civilian sites. Wall Street is also still concerned about rising interest rates, along with surging COVID-19 cases in China and Europe.

High energy prices are only adding to worries about inflation and whether the squeeze on consumers will eventually crimp spending and economic growth.

Rising inflation has prompted central banks to rethink their low interest-rate policies. The Bank of England has been one of the most aggressive, and it raised its key interest rate on Thursday for the third time since December. The Federal Reserve announced a 0.25% increase on its key interest rate on Wednesday. It is the first rate hike since 2018 and is expected to be followed by more this year as the Fed tries to tame inflation.

Friday’s gains were broad. Technology and communication stocks, retailers, automakers and other companies that rely on consumer spending helped lift the market. Chipmaker Nvidia climbed 6.8%, Facebook parent Meta rose 4.2% and Tesla rose 3.9%. Only utilities stocks fell.

Bond yields fell. The yield on the 10-year Treasury slipped to 2.14% from 2.19% late Thursday.

Several stocks made big moves after releasing their latest financial results and updates. FedEx fell 4% after its fiscal third-quarter earnings fell short of Wall Street forecasts. U.S. Steel slid 4.6% after giving investors a disappointing profit forecast.

 

[bigdog]

ASX 200 expected to push higher​

The Australian share market looks set to start the week on a positive note. This follows a strong finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 59 points or 0.8% higher this morning.

Stocks recovered from an early slide on Wall Street and closed broadly higher Friday, notching their biggest weekly gain in 16 months.


The S&P 500 rose for the fourth straight day, adding 1.2% to a streak that included back-to-back days with gains of 2%. The Dow Jones Industrial Average rose 0.8%, while the Nasdaq composite rose 2%. The three indexes each had their best week since November 2020.

 

[bigdog]

https://apnews.com/article/russia-u...-sydney-asia-32b5c8de12377a4467c3010e89aea2c9

Stocks turn lower on Wall Street after best week since 2020

By DAMIAN J. TROISE and ALEX VEIGA

Stocks capped a day of choppy trading on Wall Street with a modestly lower finish Monday, giving back some of their recent gains after the major indexes notched their best week in more than a year.

The S&P 500 slipped less than 0.1% after giving up an early gain and bouncing around for much of the day. The Dow Jones Industrial Average fell 0.6%, while the Nasdaq composite slid 0.4%.

The indecisive trading came a day after the market posted its best week since November 2020 and as Federal Reserve Chair Jerome Powell said the central bank was prepared to move more aggressively if need be to contain inflation.

Bond yields rose sharply following Powell’s remarks. The yield on the 10-year Treasury jumped to 2.30% from 2.14% late Friday.

“Powell’s comments and the bond market’s reaction to that put some pressure on the stock market today,” said Willie Delwiche, investment strategist at All Star Charts.

The S&P 500 fell 1.94 points to 4,461.18, snapping a four-day winning streak for the benchmark index. The Dow dropped 201.94 points to 34,552.99, and the Nasdaq slid 55.38 points to 13,838.46.

Smaller company stocks fared worse than the broader market. The Russell 2000 index lost 20.21 points, or 1%, to 2,065.94.

In remarks at the National Association of Business Economists, Powell said the Fed would raise its benchmark short-term interest rate by a half-point at multiple Fed meetings, if necessary, to slow inflation. The Fed hasn’t raised its benchmark rate by a half-point since May 2000.

Last Wednesday, the central bank announced a quarter-point rate hike, its first interest rate increase since 2018. Stocks rallied after the announcement and went on to have their best week in more than a year. The central bank is expected to raise rates several more times this year.

Before Russia’s invasion of Ukraine added a new wave of global economic uncertainty to the mix, some Fed officials had said the central bank would do better to begin raising rates by a half-point in March. Because Powell is now floating the possibility of a half-point increase, that could signal that such a move is on the table again.

“When the chairman says it, it kind of solidifies it,” Delwiche said.

Retailers and other companies that rely on consumer spending, and communication and technology stocks, were the biggest drag on the S&P 500 Monday. Home Depot slid 3.3%, Facebook parent, Meta Platforms, fell 2.3%, and Microsoft fell 0.4%.

Energy stocks made solid gains as oil prices gained ground. U.S. benchmark crude oil jumped 7.1% to settle at $112.12 per barrel, while Brent, the international standard, climbed 7.1% to settle at $115.62. Exxon Mobil gained 4.5%.

Investors face a fairly quiet week without much economic data to give them a better sense of how companies and investors are dealing with rising inflation.

The Fed’s move to raise interest rates had been expected for months as supply chain problems brought on by surging demand pushed prices of everything from food to clothing higher. That has raised concerns that consumers might eventually curtail some spending, which could prompt a more severe economic slowdown than analysts anticipate.

Russia’s invasion of Ukraine added to concerns that inflation could worsen by pushing energy and commodity prices higher. Oil prices are up more than 45% this year and prices for wheat and corn have also surged.

Outside of those broader concerns, several stocks made big moves on company-specific news. Alleghany, a reinsurance company, soared about 25% after agreeing to be bought by Warren Buffett’s Berkshire Hathaway. Media ratings agency Nielsen slid 6.9% after rejecting an acquisition offer.

Boeing fell 3.6% after one of its planes crashed in China with 132 people on board.

ASX 200 expected to rise​

The Australian share market looks set to rise today despite a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 78 points or 1.05% higher.

Stocks capped a day of choppy trading on Wall Street with a modestly lower finish Monday, giving back some of their recent gains after the major indexes notched their best week in more than a year.

The S&P 500 slipped less than 0.1% after giving up an early gain and bouncing around for much of the day. The Dow Jones Industrial Average fell 0.6%, while the Nasdaq composite slid 0.4%.

The S&P 500 fell 1.94 points to 4,461.18, snapping a four-day winning streak for the benchmark index. The Dow dropped 201.94 points to 34,552.99, and the Nasdaq slid 55.38 points to 13,838.46.

 

[bigdog]

https://apnews.com/article/russia-ukraine-business-china-asia-japan-44827f87d56925174e76d61fdc0b253d

Stocks gain ground on Wall Street, oil prices ease lower

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a rally for stocks on Wall Street Tuesday, as the market more than made up for a modest pullback to start the week.

The S&P 500 rose 1.1%, with more than 70% of stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 0.7% and the tech-heavy Nasdaq composite climbed 2%.

Bond yields rose sharply for the second day in a row, reflecting expectations of more aggressive interest rate hikes by the Federal Reserve as the central bank moves to squelch the highest inflation in decades. The yield on the 10-year Treasury climbed to 2.38% from 2.30% late Monday. The yield, which influences interest rates on mortgages and other consumer loans, was at 2.14% late Friday.

The rise in bond yields and stocks comes a day after Federal Reserve Chair Jerome Powell said the central bank was prepared to move more aggressively in raising interest rates in its fight against inflation, if it needs to do so. Powell said the Fed would raise its benchmark short-term interest rate by a half-point at multiple Fed meetings, if necessary.

“Maybe investors are feeling that with the Fed taking more of a proactive approach early on it won’t have to slam on the brakes later,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 50.43 points to 4,511.61, and the Dow gained 254.47 points to 34,807.46. The Nasdaq rose 270.36 points to 14,108.82.

Smaller company stocks also bounced back. The Russell 2000 index added 22.41 points, or 1.1%, to 2,088.34.

Concerns about rising inflation and slower economic growth have been weighing down stocks so far in 2022, but a rally last week helped trim some of the benchmark S&P 500′s losses for the year. The index is now down 5.3%.

Markets have been choppy as Wall Street adjusts to slower economic growth now that federal spending on various stimulus measures has faded away.

“This is actually fairly normal, but it doesn’t feel normal because the last few years have been really strong,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth.

Last Wednesday, the central bank announced a quarter-point rate hike, its first interest rate increase since 2018. The Fed hasn’t raised its benchmark rate by a half-point since May 2000.

“What has been a frustrating inflation setup for the Federal Reserve is likely getting more complex given the geopolitical conflict,” Stucky said.

Investors’ concerns about persistently rising inflation has been worsened by Russia’s war in Ukraine. Energy and commodity prices were already high as demand outpaced supply amid the global economic recovery, but the conflict has pushed oil, wheat and other prices even higher.

Rising raw material costs and shipping problems have made it more expensive for businesses to operate. Many of those costs have been passed on to consumers and higher prices for food, clothing and other goods could result in less spending and slower economic growth.

Technology and communications stocks drove a big share of the gains in the S&P 500 Tuesday, as did companies that rely on consumer spending. Apple rose 2.1% and Twitter gained 2.6%. Nike added 2.2% after reporting surprisingly good third-quarter financial results. Energy stocks slipped as oil prices declined.

Banks helped send the market higher as bond yields continued rising. Higher bond yields allow banks to charge more lucrative interest on loans. Bank of America rose 3.1% and JPMorgan Chase gained 2.1%.

The price of U.S. benchmark crude oil fell 0.3% to settle at $111.76 per barrel, while Brent, the international standard, slipped 0.1% to settle at $115.48 per barrel. European markets rose broadly, while Asian markets closed higher overnight.

Investors will soon start readying for the next round of corporate earnings reports as the current quarter nears its close at the end of March, and that could provide a clearer picture of how industries continue handling rising costs.

ASX 200 expected to rise again​

It looks set to be another strong day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% higher this morning.

Technology companies led a rally for stocks on Wall Street Tuesday, as the market more than made up for a modest pullback to start the week.

The S&P 500 rose 1.1%, with more than 70% of stocks in the benchmark index notching gains. The Dow Jones Industrial Average rose 0.7% and the tech-heavy Nasdaq composite climbed 2%.

 

[bigdog]

https://apnews.com/article/russia-u...ogy-business-b443cad0388d16c694a2281931f91d43

Stocks fall on Wall Street as crude oil prices climb again

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell broadly on Wall Street and crude oil prices rose sharply again Wednesday, as a wave of selling all but wiped out gains from a day before and left the S&P 500 and Dow Jones Industrial Average in the red for the week.

The S&P 500 fell 1.2%, with more than 80% of the stocks in the benchmark index closing lower. The Dow and Nasdaq composite each slid 1.3%.

After a strong rally last week, the market has been up and down this week as investors weigh concerns about rising inflation and slower economic growth now that federal spending on various stimulus measures has faded away and the central bank has signaled several interest rate hikes to come this year as it battles surging inflation.

Concerns on Wall Street about persistently high inflation have been elevated since Russia’s invasion of Ukraine sent energy and other commodity prices even higher. Crude oil prices have been volatile over concerns that the conflict will exacerbate an already tight market. The fluctuation in prices has been pushing and pulling the broader stock market.

“The market was a bit oversold maybe a few weeks ago and since the bounce has been pretty tremendous,” said Ross Mayfield, investment strategy analyst at Baird. “What the market is doing is trying to find a level where it’s balancing the risks that remain out there with the upside tail winds.”

The S&P 500 fell 55.37 points to 4,456.24. The Dow slid 448.96 points to 34,358.50. Both indexes are now on pace for a weekly loss.

The Nasdaq fell 186.21 points to 13,922.60. Smaller company stocks also lost ground. The Russell 2000 fell 36.14 points, or 1.7%, to 2,052.21.

The selling was widespread, with technology, health care and financial stocks among the biggest weights on the S&P 500 index. Microsoft fell 1.5% and Abbott Laboratories slid 4.1%. Retailers and communications companies also lost ground.

Energy stocks rose as crude oil prices climbed more than 5%. Hess rose 4.6% for the biggest gain in the S&P 500.

Energy prices will likely remain volatile as the conflict continues. U.S. President Joe Biden is heading to Europe for an emergency NATO summit Thursday, where sanctions and the Russian oil embargo will likely top the agenda.

U.S. benchmark crude oil rose 5.2% to settle at $114.93 per barrel, while a barrel of Brent crude, the international standard, rose 5.3% to settle at $121.60. Prices are up more than 50% in 2022 so far, raising concerns about the impact on a wide range of consumer goods and consumer spending overall.

Many of the higher costs incurred by businesses have been passed on to consumers and higher prices for food, clothing and other goods could lead them to cut spending, resulting in slower economic growth. Central banks have been reacting by raising interest rates to try and counter the impact from inflation.

The Federal Reserve has already announced a 0.25% increase for its benchmark interest rate and is prepared to act more aggressively if necessary.

Bond yields have been rising overall as the market prepares for higher interest rates, but they eased back Wednesday. The yield on the 10-year Treasury fell to 2.29% from 2.37% from Tuesday.

Investors are preparing for the latest round of corporate earnings as the quarter comes to a close. Some companies are already giving updates.

Adobe fell 9.3% after giving investors a disappointing financial forecast and warned that halting sales in Russia and Belarus will impact its revenue. Metal manufacturer Worthington Industries slid 17% after reporting disappointing fiscal third-quarter profits.

Homebuilders fell sharply after the government reported that sales of new U.S. homes fell 2% in February from a downwardly revised sales total in January. While the number of resale homes on the market remains near record lows, favoring new homes, The decline comes as mortgage rates have been rising.

D.R. Horton slid 5.1% and Tri Pointe Homes fell 5.9%.

ASX 200 expected to fall​

The Australian share market looks set to give back its gains on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.64% lower this morning.

Stocks fell broadly on Wall Street and crude oil prices rose sharply again Wednesday, as a wave of selling all but wiped out gains from a day before and left the S&P 500 and Dow Jones Industrial Average in the red for the week.

The S&P 500 fell 1.2%, with more than 80% of the stocks in the benchmark index closing lower. The Dow and Nasdaq composite each slid 1.3%.

 

[bigdog]

The Russian stock market opened Thursday for limited trading under heavy restrictions for the first time since Moscow invaded Ukraine, coming almost a month after prices plunged and the market was shut down as a way to insulate the economy.

Look for my new thread
"Russian stock market opens March 24 2022 first time since start of war"


https://apnews.com/article/russia-u...-sydney-asia-bc3803d928f2d539630ce6f877695da9

US stocks close higher as choppy trading persists, oil slips

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a broad rally for stocks on Wall Street Thursday, reversing most of the major indexes’ losses from a day earlier and extending the market’s recent run of uneven trading.

The S&P 500 rose 1.4%, more than making up for its pullback a day earlier. More than 85% of the stocks in the benchmark index rose. The Dow Jones Industrial Average gained 1%, while the tech-heavy Nasdaq composite climbed 1.9%.

The latest gains pulled the S&P 500 out of the red for the week. The Nasdaq is also on pace for a weekly gain, while the Dow is down slightly for the week after the indexes alternated between gains and losses over the past few days.

“There’s a little bit of tug-of-war right now ... and investors are just looking for direction,” said Darrell Cronk, chief investment officer for wealth & investment management at Wells Fargo.

The S&P 500 rose 63.92 points to 4,520.16, while the Dow gained 349.44 points to 34,707.94. The Nasdaq climbed 269.23 to 14,191.84.

Small company stocks also rallied. The Russell 2000 rose 23.24 points, or 1.1%, to 2,075.44.

Technology stocks accounted for the biggest share by far of the gains in the S&P 500, followed closely by communication companies. Many Big Tech companies have outsized values that tend to sway the broader market in either direction. Chipmaker Nvidia vaulted 9.8% for the biggest gain in the S&P 500. Facebook parent, Meta, rose 2.9%.

Health care stocks also had some of the strongest gains. Insurers UnitedHealth Group rose 2% and Anthem gained 2.5%.

Stocks indexes have been up-and-down after coming off a strong rally last week. Investors are trying to gauge how the economy and corporate profits will be affected this year as the Federal Reserve moves to raise interest rates in order to tame surging inflation.

Russia’s invasion of Ukraine has added more uncertainty to the global economic outlook, driving energy and other commodity prices higher. The fluctuation in energy prices has been one factor pushing and pulling the broader stock market.

Crude oil prices slipped Thursday after jumping a day earlier. U.S. benchmark crude oil fell 2.3% to settle at $112.34 per barrel. A barrel of Brent crude, the international standard, fell 2.1% to settle at $119.03. Overall, global oil prices are up more than 50% in 2022 on persistently rising inflation and concerns about crimped supplies because of Russia’s invasion of Ukraine.

Investors around the world had their eye on NATO and European leaders, which held a summit Thursday. G-7 nations are restricting the Russian Central Bank’s use of gold in transactions and the U.S. announced new sanctions against Russian individuals and entities.

Dozens of nations, including the U.S. and much of Europe, say they’re united in seeking to “radically” reduce imports of Russian oil and gas.

Sanctions have so far gutted the Ruble’s value and prompted Russia’s stock exchange to close nearly a month ago. The exchange reopened Thursday under heavy restrictions to prevent the kind of massive selloff that occurred in anticipation of crushing financial and economic sanctions from Western nations.

Wall Street is monitoring the latest developments on the conflict as it tries to determine how much it could worsen inflation and potentially crimp global economic growth. Businesses and consumers have been facing increasing costs for materials and goods which has prompted central banks to raise interest rates in order to temper the impact from inflation.

Bond yields have been rising overall as the market prepares for higher interest rates. The yield on the 10-year Treasury rose to 2.36% from 2.31% late Wednesday.

“Markets are clearly signaling a deceleration in GDP growth and earnings growth,” Cronk said.

Investors received an encouraging update on the labor market’s continued recovery. The number of Americans applying for unemployment benefits last week fell to its lowest level in 52 years. The upbeat report adds to data earlier this month that showed employers added a robust 678,000 jobs in February, the largest monthly total since July.

ASX 200 expected to rise again​

The Australian share market looks set to end the week on a positive note following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 88 points or 1.21% higher this morning.

Technology companies led a broad rally for stocks on Wall Street Thursday, reversing most of the major indexes’ losses from a day earlier and extending the market’s recent run of uneven trading.

The S&P 500 rose 1.4%, more than making up for its pullback a day earlier. More than 85% of the stocks in the benchmark index rose. The Dow Jones Industrial Average gained 1%, while the tech-heavy Nasdaq composite climbed 1.9%.

 

[bigdog]

https://apnews.com/article/russia-u...tock-markets-dbf97d5a64673f53208a4253585a242d

US stocks end mostly higher after another up-and-down day

By DAMIAN J. TROISE and ALEX VEIGA

Major U.S. indexes closed mostly higher Friday, and several of them notched weekly gains, despite a recent run of daily swings on Wall Street as traders try to figure out what’s next for the economy.

The S&P 500 index rose 0.5% after spending the day veering between a gain of 0.6% and a 0.4% decline. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq composite fell 0.2%.

The indexes alternated nearly every day this week between gains and losses. Investors are trying to suss out what’s next for inflation and the global economy as the repercussions of Russia’s invasion of Ukraine continue to play out.

The benchmark S&P 500 posted a 1.8% gain for the week. That follows a 6.2% rise last week. The tech-heavy Nasdaq and Dow have also posted a weekly gain now the past two weeks.

Bond yields rose significantly. The yield on the 10-year Treasury jumped to 2.48% from 2.34% late Thursday. Crude oil prices rose moderately after slipping earlier in the day.

“We’re still in this relatively neutral outlook right now, trying to digest what’s happening at the Federal Reserve, watching events in Russia-Ukraine and then getting ready for the first-quarter earnings season,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 rose 22.90 points to 4,543.06. The Dow gained 153.30 points to 34,861.24, and the Nasdaq fell 22.54 points to 14,169.30.

Smaller company stocks also rose. The Russell 2000 index added 2.54 points, or 0.1%, to 2,077.98.

Banks and energy stocks accounted for a big share of the S&P 500′s gains. The rise in bond yields helped lift banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America rose 1.5%.

Technology stocks fell and checked gains elsewhere in the market. Big technology companies have outsized values that tend to lend more weight in pushing the broader market higher or lower. Chipmaker Nvidia fell 1.6%.

The price for U.S. benchmark crude oil rose 1.4% to settle at $113.90 per barrel, while a barrel of Brent crude, the international standard, rose 1.4% to $120.65. Prices are still up about 50% globally for the year. The pickup in oil prices helped lift energy stocks. Exxon Mobil gained 2.2%.

Oil prices have been volatile since Russia’s war against Ukraine began in February. Russia is the second-biggest crude exporter. Energy prices were already high, but the conflict has raised concerns about a worsening supply crunch that could maker persistently rising inflation even worse.

The U.S. and Europe announced a partnership Friday to reduce the continent’s reliance on Russian energy in hopes of further isolating Moscow for its aggression. Russia has threatened to make Europe pay for natural gas exports in rubles, which has seen its value gutted because of sanctions and other actions. Russia’s economy has been battered as governments cut it off from international banking and commerce.

The conflict in Russia has added to global concerns about rising inflation and the potential for economic growth to slow even more than anticipated. A survey on Friday showed that business confidence in Germany, Europe’s largest economy, dropped sharply in March because of conflict in Ukraine.

Central banks, including the Federal Reserve, are moving to raise interest rates to try and temper the impact from rising inflation, which has only been made worse by Russia’s war in Ukraine. The conflict is also pushing wheat and other commodity prices higher, as both Russia and Ukraine are major global suppliers.

 

[bigdog]

ASX 200 expected to push higher​

The Australian share market looks set to start the week on a positive note. This follows a decent finish to week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day +31.5 points or +0.43% higher this morning.

Major U.S. indexes closed mostly higher Friday, and several of them notched weekly gains, despite a recent run of daily swings on Wall Street as traders try to figure out what’s next for the economy.

The S&P 500 index rose 0.5% after spending the day veering between a gain of 0.6% and a 0.4% decline. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq composite fell 0.2%.

 

[bigdog]

https://apnews.com/article/russia-u...usiness-asia-def41c712e5a6a05a681f2468b657074

Wall Street shakes off a midday slump and ends higher

By DAMIAN J. TROISE and ALEX VEIGA

Stocks indexes bounced back from a midday slump on Wall Street to finish higher Monday, adding to the market’s recent winning streak despite lingering worries about the resilience of the global economy amid surging inflation and geopolitical tensions.

The S&P 500 rose 0.7% after being down as much as 0.6%. The Dow Jones Industrial Average eked out a 0.3% gain after having been in the red much of the day, while the Nasdaq composite climbed from a 0.5% deficit to close 1.3% higher. The indexes were coming off two straight weekly gains.

Trading has remained choppy, even through the market’s recent run of gains, as investors try to gauge what’s next for inflation and the global economy as the repercussions of Russia’s invasion of Ukraine continue to play out.

The benchmark S&P 500 posted a 1.8% gain last week and a 6.2% rise the previous week. It’s also up eight of the last 10 trading days, which is “pretty impressive,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

Frederick said many investors may have reached a point of “panic exhaustion,” which could explain the market’s recent gains. Plus, he notes, apart from inflation, economic fundamentals look good, including a strong labor market and consumer spending.

“People complain about inflation, but they’re still spending and they’re still traveling,” he said.

The S&P 500 rose 32.46 points to 4,575.52. The index is now down 4% for the year. The Dow gained 94.65 points to 34,995.89, while the Nasdaq rose 185.60 points to 14,354.90.

Smaller company stocks were little changed. The Russell 2000 index inched up 0.08 points, or less than 0.1%, to 2,078.06.

Technology stocks helped power much of the comeback in the benchmark S&P 500 along with retailers, cruise lines and other companies that rely on consumer spending. Microsoft rose 2.3% and Tesla vaulted 8% for the biggest gain in the index.

Those gains outweighed a pullback in other sectors, including banks, which fell as bond yields eased lower, and energy stocks, which lost ground as crude oil prices closed sharply lower. Citigroup fell 1.4% and Exxon Mobile slid 2.8%.

U.S. crude oil slumped 7% and Brent crude, the international standard, fell 6.8%. The drop followed news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai. That could put a dent in global demand for energy.

Oil prices remain volatile amid the backdrop of Russia’s invasion of Ukraine. The United Arab Emirates’ energy minister doubled down Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day, is an important member of the global OPEC+ energy alliance.

Ukraine and Russia are due to hold talks early this week in Turkey.

Oil prices are up about 40% globally over concerns about tighter supplies as demand remains strong. Higher oil prices are also raising concerns that already persistently high inflation could be worsened, further threatening global economic growth.

Markets in Europe closed mostly higher, while markets in Asia ended mixed.

Russian shares slumped as its stock market resumed trading of all companies after a monthlong halt following the invasion of Ukraine. The last full trading session in Moscow was on Feb. 25, a day after the index tumbled by a third after President Vladimir Putin ordered the invasion.

Bond yields eased back after shooting higher this month. The yield on the 10-year Treasury fell to 2.46% from 2.49% late Friday. Bond yields have been rising as Wall Street prepares for higher interest rates. The Federal Reserve has already announced a 0.25% hike of its key benchmark interest rate and is prepared to continue raising rates to help temper the impacts of rising inflation.

Investors will get more updates this week on just how much inflation is hurting consumers and businesses. The Conference Board will release its consumer confidence index for March on Tuesday. The Commerce Department will release its February report for personal income and spending on Thursday and the Labor Department will release its employment report for March on Friday.

Company-specific news helped lift several stocks on an otherwise quiet day as the latest quarter nears its close and Wall Street prepares for the next round of corporate earnings. Tesla’s big stock price jump came after the electric car maker said it is considering another stock split. Plantronics jumped 52.6% after HP said it will buy the headset maker.

ASX 200 expected to rise​

The Australian share market looks set to rise today . According to the latest SPI futures, the ASX 200 is poised to open the day 0.5 points or 0.01% higher.

Stocks indexes bounced back from a midday slump on Wall Street to finish higher Monday, adding to the market’s recent winning streak despite lingering worries about the resilience of the global economy amid surging inflation and geopolitical tensions.

The S&P 500 rose 0.7% after being down as much as 0.6%. The Dow Jones Industrial Average eked out a 0.3% gain after having been in the red much of the day, while the Nasdaq composite climbed from a 0.5% deficit to close 1.3% higher. The indexes were coming off two straight weekly gains

 

[bigdog]

https://apnews.com/article/russia-u...urope-prices-ab753a44540cc346450c1ed828d6cf24

Wall Street builds on gains as talks on Ukraine progress

By DAMIAN J. TROISE and ALEX VEIGA

Stocks notched more gains on Wall Street Tuesday as investors welcomed encouraging economic data and as talks on ending the war in Ukraine showed signs of progress.

The S&P 500 rose 1.2%, its fourth straight gain. The Dow Jones Industrial Average ended 1% higher and the Nasdaq composite climbed 1.8%. The latest gains build on the major indexes’ gains the past two weeks, even in the midst of choppy trading and volatile energy prices.

The market rally followed signs that first face-to-face talks in two weeks between Russia and Ukraine made some progress. Turkey hosted the discussions Tuesday, and the nation’s foreign minister said afterward that Russian and Ukrainian negotiators had reached “a consensus and common understanding” on some issues.

Russia’s military said it would “fundamentally” cut back operations near Ukraine’s capital and a northern city, as talks brought a possible deal to end a grinding and brutal war into view.

President Joe Biden said Tuesday he wasn’t convinced yet that Russia’s announcement about scaling back its military operations will lead to a fundamental shift in the war.

Still, markets welcomed the developments and how they might affect the potential duration and impact of rising inflation on businesses and consumers when the conflict began a month ago.

“There’s a sense of hope in the market today that a resolution is nearing there,” said Lindsey Bell, chief markets and money strategist at Ally Invest.

The S&P 500 rose 56.08 points to 4,631.60. The Dow gained 338.30 points to 35,294.19, and the Nasdaq rose 264.73 points to 14,619.64.

Smaller company stocks outpaced the broader market in a sign that investors were confident about the economy. The Russell 2000 rose 55.04 points, or 2.7%, to 2,113.10.

Russia’s invasion of Ukraine has been unsettling markets and adding to lingering concerns about persistently rising inflation and global economic growth.

“What we’ve seen over the course of last several weeks is capital markets have looked toward removing some of the worst case scenarios,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.

Energy prices have been extremely volatile as the conflict continues, but have been easing over the last few days. Pressure on prices is also being relieved as Chinese authorities lock down Shanghai because of a surge in COVID-19 cases, which could crimp global demand for oil.

U.S. crude oil prices fell 1.6% and Brent crude, the international standard, slid 6.8%. Prices are still up more than 30% globally, but were up more than 50% as of just last week.

Falling oil prices weighed down energy companies, which had some of the biggest losses on Tuesday. Chevron fell 1.2%

More than 85% of the stocks in the benchmark S&P 500 rose. Technology and communication stocks helped power the rally, along with big retail chains, automakers and other companies that rely on consumer spending. Apple rose 1.9% and Netflix added 3.5%. Ford Motor climbed 6.5% and General Motors gained 4.6%.

European markets rose, while Asian markets closed mixed overnight.

The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, fell to 2.39% from 2.47% late Tuesday. It briefly dropped below the 2-year Treasury’s yield, what Wall Street calls an “inversion” of the Treasury yield curve. Investors take note of this because prolonged yield inversions have accurately predicted previous U.S. recessions. The 2-year Treasury yield rose to 2.36%.

The brief inversion in the yield curves may just be a blip, given that in the times when they’ve preceded a recession, they’ve remained inverted for some time and, even then, it’s taken an average of 18 months before a recession followed, Bell said.

“Developments in that part of the yield curve over the next couple of days, next couple of weeks, will be really important to watch,” she said.

Bond yields had been rising as Wall Street prepares for higher interest rates after years of ultra-low interest policies from central banks around the world. The rate hikes are part of a strategy to help temper the impacts of rising inflation.

The Federal Reserve has already announced a 0.25% hike of its key benchmark interest rate and is prepared to continue raising rates.

Wall Street is also reviewing the latest economic updates this week. U.S. consumer confidence bounced back in March, according to a report from business research group The Conference Board.

The Commerce Department will release its February report for personal income and spending on Thursday and the Labor Department will release its employment report for March on Friday.

ASX 200 expected to rise​

It looks set to be another good day for the Australian share market on Wednesday following a positive night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 86.5 points or 1.17% higher this morning.

Stocks notched more gains on Wall Street Tuesday as investors welcomed encouraging economic data and as talks on ending the war in Ukraine showed signs of progress.

The S&P 500 rose 1.2%, its fourth straight gain. The Dow Jones Industrial Average ended 1% higher and the Nasdaq composite climbed 1.8%. The latest gains build on the major indexes’ gains the past two weeks, even in the midst of choppy trading and volatile energy prices.

I have added two new the columns to table on the end

 

[bigdog]

https://apnews.com/article/russia-ukraine-kyiv-business-china-asia-e54d573b6fe431475e3270a21c84127d

Stocks fall, breaking a 4-day winning streak on Wall Street

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led stocks lower on Wall Street Wednesday, ending a four-day winning streak for the market, after an economic report stoked worries about the health of the economy.

The S&P 500 fell 0.6% after having been down nearly 1.1% at one point. The Dow Jones Industrial Average slipped 0.2%, making it nearly all the way back from a 0.7% loss. The pullback was the indexes’ first lower close in five days. The tech-heavy Nasdaq composite fell 1.2%.

New data from the Commerce Department Wednesday showed the U.S. economy grew at an annual pace of 6.9% from October through December, slower than previous estimates and short of economists expectations.

The data, coming in the midst of a rebound for stocks the past two weeks, may have led investors to recoup some recent gains, said Sam Stovall, chief investment strategist, CFRA..

Technology companies led stocks lower on Wall Street Wednesday, ending a four-day winning streak for the market, after an economic report stoked worries about the health of the economy.

The S&P 500 fell 0.6% after having been down nearly 1.1% at one point. The Dow Jones Industrial Average slipped 0.2%, making it nearly all the way back from a 0.7% loss. The pullback was the indexes’ first lower close in five days. The tech-heavy Nasdaq composite fell 1.2%.

New data from the Commerce Department Wednesday showed the U.S. economy grew at an annual pace of 6.9% from October through December, slower than previous estimates and short of economists expectations.

The data, coming in the midst of a rebound for stocks the past two weeks, may have led investors to recoup some recent gains, said Sam Stovall, chief investment strategist, CFRA..

“The GDP numbers were weaker than we were expecting,” Stovall said. “It looks looks like we’re getting a soft patch in the first quarter.”

The S&P 500 fell 29.15 points to 4,602.45. The Dow slid 65.38 points to 35,228.81. The Nasdaq lost 177.36 points to 14,442.27.

In a reversal from a day earlier, smaller company stocks fell more than the broader market. The Russell 2000 index skidded 42.03 points, or 2%, to 2,091.07.

Markets have mostly gained ground this week as talks between Russia and Ukraine seemed to show progress and following encouraging data on consumer confidence.

Negotiations between Russia and Ukraine remain uncertain, however, and Russian shelling in areas where it had said it would pull back tempered optimism about prospects for a resolution to the conflict.

Technology stocks were among the biggest weights on the broader market. Many of the companies in the sector have lofty values that tend have an outsize effect on which way market indexes go. Chipmaker Nvidia fell 3.4%. Retailers also fell. Home Depot slipped 2.9%.

Oil prices, which have been volatile since Russia invaded Ukraine in February, gained ground. U.S. benchmark crude oil rose 3.4% and Brent crude, the international standard, rose 2.9%. Energy stocks gained ground along with rising oil prices. Phillips 66 rose 4.8%.

Bond yields fell. The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, slipped to 2.35% from 2.40% late Tuesday.

Bond yields have been mostly rising this year as Wall Street prepares for a shift in policy from the Federal Reserve. The central bank, along with its global counterparts, is raising benchmark interest rates to help fight persistently rising inflation.

Wall Street is also closely watching the bond market for clues about the economy’s path. On Tuesday, the yield for 10-year Treasury briefly dropped below the 2-year Treasury’s yield, what Wall Street calls an “inversion” of the Treasury yield curve. Investors take note of this because prolonged yield inversions have accurately predicted previous U.S. recessions. The 2-year Treasury yield fell to 2.33% from 2.35% late Tuesday.

Investors have several more economic updates to review this week. On Thursday, the Commerce Department will release its personal income and spending report for February and the Labor Department on Friday will release is employment report for March.

Wall Street is also preparing for the latest round of corporate report cards as the quarter comes to a close. Several companies have already released financial results and updates.

Athletic apparel maker Lululemon jumped 9.6% after reporting encouraging financial results for its most recent quarter and giving a strong sales forecast. Online pet store Chewy slumped 16.1% after reporting a fiscal fourth-quarter loss that was steeper than analysts expected.

ASX 200 expected to fall

The Australian share market looks set to edge lower on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.12% lower this morning.

Technology companies led stocks lower on Wall Street Wednesday, ending a four-day winning streak for the market, after an economic report stoked worries about the health of the economy.

The S&P 500 fell 0.6% after having been down nearly 1.1% at one point. The Dow Jones Industrial Average slipped 0.2%, making it nearly all the way back from a 0.7% loss. The pullback was the indexes’ first lower close in five days. The tech-heavy Nasdaq composite fell 1.2%.