Stock Market Roars Back On Word Of Russia-Ukraine Talks; Dow Percentage Gain Is Biggest Since November 2020
After retreating on Thursday due to Russia’s invasion of
Ukraine, U.S. stock markets rebounded sharply today as bargain-hunters bought
in and investors cheered news of possible diplomatic talks.
While the stunning act of military aggression continues to cast
a pall over the economies of much of the West, the Dow Jones Industrial
Average, Nasdaq and S&P 500 gained between 1.6% and 2.5%. The Dow’s 2.5%
rise was its biggest in percentage terms since November 2020. In the media
sector, gainers far outweighed decliners, with the winner’s circle including
Fox Corp., AT&T, Roku, Comcast and Dish Network. There were no downturns of
any particular note, though shares in both Disney and Netflix finished
essentially flat for the day.
The Dow rose 834.92 points to close at 34,058.75, while the
Nasdaq gained 1.6% and the S&P tacked on 2.25%.
Russian President Vladimir Putin and other Kremlin officials
have agreed to meet with their counterparts from Ukraine for talks in
neighboring Belarus, according to multiple reports. Tensions remain high, of
course, as Putin has continued publicly insulting Ukrainian President Volodymyr
Zelensky and the Russians have spread baseless propaganda about the Ukrainians
engaging in genocide. In what was broadly interpreted as an encouraging sign,
Putin told China President Xi Jinping, that he was willing to follow through
with talks, according to Chinese officials.
While market volatility is apt to continue, some
chart-watchers point to signs in today’s upswing that suggest that markets are
moving past recent declines to stage a reversal toward more bullish sentiment.
The Nasdaq and S&P each has fallen by double digits in 2022 to date, while
the Dow has slipped 7%.
Covering Ukraine: Five U.S. Journalists Talk About Their
Experiences On-Air & In Country As Invasion Unfolded
Of course, the market is not the same as the economy as a
whole, and inflation is a major source of anxiety for many companies and
individuals in the U.S. With consumer prices already rising sharply in recent
weeks and government officials scrambling for solutions, the Russia-Ukraine
situation is seen as leading to higher costs for gas and other necessities in
the near term. Economists and analysts are poring over data points from the
past 24 hours to try to project what the impact will be of economic sanctions
introduced by President Biden. Sensitive to inflation, which has been a
defining feature of his first year in the White House, Biden has vowed to
fine-tune the sanctions in order to exact a steep toll on Russia but much less
of one on Americans.
Even on the commodities front, though, today brought hopeful
news as crude oil fell below $100 a barrel.