Dow Jones up 650 points, S&P 500 up 2.5%

US stocks turned sharply higher on Wednesday (March 9), as recent gains in commodity prices, especially oil, cooled while the war in Ukraine continued.

Closing Wednesday's session, the Dow Jones Industrial Average added 653.61 points, or 2.0%, to 33,286.25, supported by gains in shares of Salesforce, Nike and JPMorgan. The S&P 500 index advanced 2.6% to 4,277.88, marking its biggest gain since June 2020. The Nasdaq Composite Index jumped 3.6% to 13,255.55, also posting its biggest gain since November, boosted by a surge in big tech stocks.

Wednesday's rally took the Dow Jones out of a correction and the Nasdaq Composite out of a bear market.

Oil prices fell sharply in the afternoon session, thereby providing additional support for stocks. WTI oil fell $15 (or more than 12%) to $108.7 a barrel, the worst session since November 26, 2021. Meanwhile, Brent oil lost 16.8 USD (equivalent to 13%) to 111.1 USD/barrel, marking the biggest drop since April 2020.

The market is reacting to the decline in commodity prices, which has sent stocks wobbling recently. In particular, agricultural and energy products jumped amid the war in Ukraine, while some metals also recorded strong gains.

Silver, copper and platinum all fell on Wednesday. Wheat futures also fell sharply, although palladium continued to extend its steep climb.

Technology stocks helped propel the major indexes higher, with Netflix surging 5% and Microsoft stock surging 4.6%. Meta Platforms and Alphabet shares jumped 4.3% and 5%, respectively.

Several consumer-related stocks rebounded on Wednesday, after falling on worries that rising gas prices would dampen consumer spending. Nike stock jumped 4.7% and Starbucks stock rose 4.3%.

Aviation and yacht stocks also gained on Wednesday. Carnival shares climbed 8.8% and United Air Lines shares rose 8.3%.

Government bond prices fell and yields rose as investors pulled out of bonds after flocking to the fixed-income channel for protection amid the Ukraine war. The yield on the 10-year US government bond added 5 basis points to 1.93%. 1 basis point is equivalent to 0.01%.

Banking stocks also rose along with yields. Bank of America shares jumped 6.4% and Wells Fargo stock jumped 5.8%.

Energy stocks turned lower on Wednesday after the previous session's strong rally after US President Joe Biden announced a ban on fuel imports from Russia, including oil, in response to the country's invasion of Ukraine. .

In terms of economic data, the US Labor Department said on Wednesday that vacancies outnumbered existing workers by nearly 5 million in January 2022.

(According to CNBC)

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