Turning on Wall Street – Nasdaq rises above three percent

Wall Street is recovering from a sharp decline

The Russian invasion of Ukraine led to a sharp decline in the stock market since the beginning of the leading indexes on Wall Street. The Dow is down 2.55 percent, the S&P is down 2.5, while the tech-heavy Nasdaq is down more than 2.7 percent right after the open.

During the trading day, the Dow Jones and Standard & Poor’s marked notable declines, while the Nasdaq oscillated between highs and lows, before rising sharply at the end of trading.

This is what it looks like with the three leading stock market indices at closing time:

  • The industry-heavy Dow Jones rose 0.28 percent.
  • The Nasdaq Technology Index rose 3.34 percent.
  • The broad S&P 500 index rose 1.49 percent.

– From a purely economic point of view, this is not dramatic for the West at all

The stock market has been marked by turmoil since the beginning of the year, but after the situation with Russia escalated, the stock market turmoil increased significantly. However, investment manager Lev Ron H. Nordea Leaf’s Rehn The invasion of Ukraine has little significance for the Western economy, once it becomes a reality.

– Today’s invasion was expected and the markets had plenty of time to praise it. Now that the uncertainty about what will happen has subsided, the market has realized that this doesn’t matter much to the incremental earnings of companies in the West and that indices are rising, says Ryan.

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Wall Street saw sharp volatility on Wednesday and the Dow Jones index ended down 464 points, or 1.3 percent. At the time of closing, the index was at its lowest level so far this year. The S&P 500 fell 1.8 percent, deepened the correction and ended Wednesday about 12 percent lower than the record close on January 3. The tech-heavy Nasdaq Composite lost 2.6 percent on Wednesday.

Tension and turmoil also characterized large parts of Thursday’s trading day. However, after US President Joe Biden imposed new sanctions on Russia and announced that the United States would open strategic oil stocks to counter the sharp rise in oil prices, the wind in the three indicators turned.

For Western countries, sanctions will have to live with it, and it is not certain that they would have had an effect if they were more stringent.

After close time, the Nasdaq is up over three percent, and we’d say the index is up more than six percent during the trading day.

It’s a war, and it’s likely to cause volatility in the stock market in the future, but in financial terms, that’s not so dramatic for the West, says Ryan.

Thursday’s market reaction after Russia’s invasion of Ukraine:

  • US stock market indices fell more than 2% in pre-trading on Thursday.
  • The stock market slump affected the stock markets in Asia and Europe on Thursday.
  • On the other hand, energy companies are witnessing an increase with the price of raw materials increasing further as a result of the situation.
  • The price of North Sea Brent spot oil, which is used as a reference price for oil trade worldwide, jumped 7.7 percent to $104.56 a barrel. Thus, the price of oil crossed the $100 level for the first time since 2014.
  • European gas prices are rising sharply: The Dutch monthly contract jumped more than 40 percent to 125 euros per megawatt-hour on Thursday, Bloomberg reported.
  • In the fixed income market, there is also movement, and the US fell for ten years above 10 basis points Thursday night. Currently, the ten-year-old is trading at 1.87 per cent. At the same time, interest rate expectations in the United States have subsided after the outbreak of the war in Ukraine.
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Oil prices fell

Concerns that Russia’s energy exports could be curtailed or halted have driven oil prices to record levels. During the day, oil prices fell by $104 a barrel. However, shortly after Biden announced that the United States was opening up its strategic oil reserves, oil prices fell sharply. At 22 NST, a barrel of North Sea Brent Spot oil is trading at just over $99.

Energy company prices rose as a result of higher commodity prices in the pre-trade phase. Devon Energy rose 5 percent and Chevron rose 4.2 percent in pre-market trading. At closing time, however, Chevron and Devon Energy shares were down 0.52 and 1.49 percent, respectively.

Bank stocks were among the biggest losers in the pre-trading period. Bank of America and Bank of New York Mellon are down more than four percent on the day. However, shares recovered, dropping 2.66 percent and 1.59 percent, respectively, after trading ended Thursday.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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