Tech, financials lead resurgent Wall Street as oil plunges - Times of India

Tech, financials lead resurgent Wall Street as oil plunges – Times of India

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US stocks surged on Wednesday led by financial and tech shares, rebounding from several down days as oil prices pulled back sharply and investors gauged developments in the Ukraine crisis.
Oil tumbled on Wednesday after reports that the United Arab Emirates will call on fellow OPEC members to boost production, potentially easing some of the supply concerns caused by sanctions on Russia after its conflict with Ukraine. A steep rise in oil and other commodities has sparked concerns about a further jolt to rising inflation and the potential for slowing economic growth.
“I think it is an oversold rally on cooling in commodities,” said Walter Todd, chief investment officer at Greenwood Capital. “Stocks have been sold pretty aggressively for a few days. I don’t know that it permanently changes the direction of things.”
According to preliminary data, the S&P 500 gained 105.54 points, or 2.53%, to end at 4,276.24 points, while the Nasdaq Composite gained 453.66 points, or 3.58%, to 13,249.21. The Dow Jones Industrial Average rose 641.25 points, or 1.97%, to 33,273.89.
Financials and the heavyweight technology group were among the top-gaining S&P 500 sectors.
Energy, which has been the standout sector performer in 2022, fell as benchmark Brent crude slid to around $110 a barrel from over $130 earlier in the week.
Travel and leisure stocks, which have been hit hard recently, also soared, including shares of Carnival Corp and United Airlines Holdings.
“The market is taking a break, consolidating from this downtrend that has seen a lot of stocks getting really, really hammered, especially on the growth side of the market,” said Anu Gaggar, global investment strategist for Commonwealth Financial Network.
In the latest developments, Ukraine accused Russia of bombing a children’s hospital in the besieged port of Mariupol during an agreed ceasefire to enable civilians trapped in the city to escape.
Ukraine’s foreign minister Dmytro Kuleba was due to meet Russian foreign minister Sergei Lavrov in Turkey on Thursday.
Stocks have struggled as concerns about the Russia-Ukraine crisis have deepened a sell-off initially fueled by worries over higher bond yields as the Federal Reserve is expected to tighten monetary policy this year to fight inflation.
On Monday, the Nasdaq confirmed it was in a bear market, falling over 20% from its record high, while the Dow Jones Industrial Average confirmed it was in a correction as it closed more than 10% lower from its record peak.
Investors were awaiting Thursday’s report on US consumer prices as a key data release ahead of the Fed’s March 15-16 meeting.



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