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S&P 500 Jumps on Revived Hopes for Diplomatic Path to End War; Inflation Data Eyed

Published 03/09/2022, 04:00 PM
Updated 03/09/2022, 04:07 PM
© Reuters

By Yasin Ebrahim

Investing.com -- The S&P 500 surged Wednesday, on hopes of a diplomatic resolution to the Russia-Ukraine war after Ukraine said it was open to discussing Russia’s demand for neutrality, which could prove key in ending the conflict.

The S&P 500 rose 2.6%, the Dow Jones Industrial Average gained 2%, or 653 points, the Nasdaq Composite rose 3.6%.

“U.S. equity markets are rallying this morning, as favorable geopolitical chatter and bargain buying work to reduce oversold chart conditions on benchmarks like the S&P 500,” Janney Montgomery Scott said in a note.

Ukraine reportedly said it was open to discussing Russia’s demand of neutrality in exchange for security guarantees.

The prospect, albeit still very nascent, of a diplomatic resolution to the Russia-Ukraine crisis cooled the run-up in commodity prices including energy, and eased fears about a prolonged impact on global growth.

Technology stocks and financial stocks led the market rebound, with the latter boosted by a surge in banks as Treasury yields jumped.

Signature Bank (NASDAQ:SBNY), Bank of America (NYSE:BAC), and Fifth Third Bancorp (NASDAQ:FITB) were up more than 6%.

Big tech also played a role in the broader market melt up, led by Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Apple.

Apple (NASDAQ:AAPL) was up more than 3%, a day after the tech giant unveiled a several new products including a new updated iPhone and revamped M1 chip.

Netflix (NASDAQ:NFLX) jumped 5% after Wedbush upgraded its rating on the streaming company to a neutral rating from underperform.

The decline in oil prices also provided a boost to fuel-sensitive sectors of the market including airlines and cruise lines.

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Carnival (NYSE:CCL), Norwegian Cruise Line(NYSE:NCLH), American Airlines (NASDAQ:AAL), and United Airlines (NASDAQ:UAL) were up sharply.

The rebound in the broader market comes just a day ahead of an inflation report expected to show that consumer prices rose nearly 8% in the 12 months through February.

The economy, however, is expected to remain in good shape despite forecasts of slowing growth ahead as the consumer, which makes up about 66% of the economy, has shown little sign of reining in spending.

"The lack of early signs of deterioration in consumer spending like substitutions and trading down [reflects] the ability of the consumer to continue to spend money,"  Sarah Henry, portfolio manager at Logan Capital Management said in an interview with Investing.com on Wednesday. "They're still willing to pay up for all of the things that they were paying for throughout the pandemic."

Latest comments

Here’s the bottom line. Putin is going to take over the Ukraine. No ifs no buts. That’s how this is going to end. Do you get it now?
Well that was random….
Putin will have soldiers in large parts of Ukraine. That is NOT how it will end. Watch and see.
putler is a coward, now he's getting his a(ss) handed to him he's looking for a way to slither back out again
Did MSM tell you that? you're so Informed.
dumbest most nonsensical title ever
The headlines are desperate to make something out of the market moves! The market always has a mind of its own. Dont trade the headlines trade the market!
Actually this sugar coating of news is just prolonging the ultimate outcome. We have had 3 massive shocks to world economy - Trump Trade war , Covid and now this and the indices are ignoring all three from a historical perspective. God helps us all when we eventually realise we are running on a ' screaming hot engine with 4 wheels bogged down in a sand dune.'
They like to keep the masses distracted
as the West destroys the Russian economy the markets creates more volatility and more opportunities to make money .... having fun making money and watching the Russian dictatorship' sink into an economic stone age.. Russia the land of ignorance, oppression and poverty.
They deserve everything they are getting.
Rubbish. No chance Russia or Putin will back down.
putler is a coward, now he's getting his a(ss) handed to him he's looking for a way to slither back out again
Then they will be backed down against their will.
What load of ****** No chance Putin, Russia backing down.
i have news for ya, usa and china would create new military alliance. trust me, like the news above
Yep, a Ukraine resolution is going to wipe away inflation, cause wage growth to surge, and justify the valuation of the laughingstock of the financial world.  Right.  What an absolute joke.
The Ukraine should be neutral, it's the best route for any country and better than being beholden to any outside regime.  I'm sure both the warmongering US Democrats and Russia do what ever it takes to keep Ukraine from being neutral.  Can the Ukraine leaders forgo the promises, or bribes, of billions?
Why on Earth would they *want* to be neural? Clearly if the one side doesn't get what it wants it starts to: threaten nuclear war, invades the country, kills it's citizens, children, grandmothers, sons and daughters, pushes assignation attempts, jails the opposition, the list just goes on.
I knew it! Roger Miller is actually a pseudonym for Tucker Carlson! “Warmongering US Democrats” is a dead giveaway. Such a phrase couldn’t possibly display a weaker grasp of the obvious. A cursory Google of “bipartisan support for Ukraine” will turn up bunches of articles from well-known left- and right-leaning outlets. In the words of the great philosopher and statesman, Bugs Bunny, “What an ultramaroon.” Pound sand, fanboy.
The S&P is only over sold on a short term chart. On a day to day chart, it's been over bought for years. That's why you always hear people say a crash is coming.... because it is.
Maybe this situation could be resolved if the Ukrainian actor stops acting like a social media luddite and trying to spread a constant stream of misinformation in order to push his political agenda to get Ukraine added to NATO, and instead acts like an adult and negotiates with the big boys. Instead the media is out there presenting this issue as something black and white and trying to drag the US into war because it will help give them new cl.ickb.ait since people are tired of hearing about COVID. There is a reason that the US was dragged into Afghanistan for decades and now that they are gone they want to drag us into another pointless foreign conflict. And let's not forget the millions of dollars people like Hunter Biden were paid in Ukraine in shady business dealings.
The situation will be resolved when Putin is out of office and the unnecessary and reckless war on a sovereign nation stops.
The stock market went up on hope? Gee... if that's the case, I sure HOPE I become a millionaire soon.
Maybe this situation could be resolved if the Ukrainian actor stops acting like a social media luddite and trying to spread a constant stream of misinformation in order to push his political agenda to get Ukraine added to NATO, and instead acts like an adult and negotiates with Putin. Instead the media is out there presenting this issue as something black and white and trying to drag the US into war because it will help give them new clickbait since people are tired of hearing about COVID. There is a reason that the US was dragged into Afghanistan for decades and now that they are gone they want to drag us into another pointless foreign conflict. And let's not forget the millions of dollars people like Hunter Biden were paid in Ukraine in shady business dealings.
Thanks FED. Hope loves stimulus
Have you been on Twitter lately? It does not sound that way.
Right lol
Twitter? hahahaha yeah, Twitter, sure
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