US close: Dow books 600-point gain as stocks rebound

dl united airlines us usa united states of america plane airline aircraft travel pd — United AirlinesSharecast / public domain image

US stock markets closed well above the line on Wednesday, as commodity prices eased and Chinese leader Xi Jinping asked France and Germany to help support peace talks between Russia and Ukraine.

At the close, the Dow Jones Industrial Average was up 2% at 33,286.25, as the S&P 500 added 2.57% to 4,277.88 and the Nasdaq Composite was ahead 3.59% at 13,255.55.

The Dow closed 653.61 points higher on Wednesday, reversing losses recorded in the previous session after president Joe Biden banned the import of Russian oil, gas and coal into the US.

Crude prices had hit a 13-year high earlier in the week, and spiked above $130 per barrel once again overnight after Biden’s announcement, with a similar oil blockade set out by the UK.

They continued to slide throughout the US session on Wednesday, however, with Brent futures last down 12.09% on ICE at $112.51 per barrel, and West Texas Intermediate losing 11.21% to $109.83.

“These markets are kind of insane right now - it’s the kind of market that will cut you up in both directions,” quipped Markets.com’s Neil Wilson.

“Just a $25 range for Brent today - huge crash followed by a bounce - simply unbelievable moves in crude markets, reflecting deep uncertainty about what way things will go.

“I still favour higher from here but it’s a nasty, capricious market.”

However, the yield on the benchmark 10-year note rose to 1.951% as market participants continued to focus on the overall trend of rising inflation.

Turning to the Russia-Ukraine conflict, China's President Xi Jinping called for "maximum restraint" and said Beijing was "pained to see the flames of war reignited in Europe".

Xi told French President Emmanuel Macron and German Chancellor Olaf Scholz on Tuesday that the three countries should jointly support peace talks between Russia and Ukraine, according to state broadcaster CCTV.

The Chinese leader was also said to have described the situation in Ukraine as "deeply worrying" and that the priority should be preventing it from escalating or "spinning out of control".

However, China has still refused to publicly condemn Russia's attack on Ukraine or even refer to it as an invasion, and previously voiced opposition to what it branded as “illegal sanctions” against Moscow.

On the macro front, US mortgage applications jumped 8.5% in the week ended 4 March for their first rise in five weeks, with Americans taking advantage of a drop in mortgage rates, according to the Mortgage Bankers Association.

"Mortgage rates dropped for the first time in 12 weeks, as the war in Ukraine spurred an investor flight to quality, which pushed US Treasury yields lower,” said MBA economist Joel Kan.

“Looking ahead, the potential for higher inflation amidst disruptions in oil and other commodity flows will likely lead to a period of volatility in rates as these effects work against each other.”

Elsewhere, the number of job openings in the US increased to 11.3 million in January from 10.92m in December 2021, according to the Bureau of Labor Statistics' monthly JOLTs job report.

Hires and total separations were little changed at 6.5 million and 6.1 million, respectively.

Job openings, however, decreased in several industries, with the largest decrease in accommodation and food services.

Openings increased in the "other services" and durable goods manufacturing categories.

In the corporate space, Campbell Soup Company managed gains of 0.78% after it matched estimates for adjusted quarterly earnings of 69 cents per share, but said sales had fallen on labour and supply constraints.

Cruise operator Carnival jumped 8.75% and United Airlines ascended 8.27% amid a solid performance among travel stocks, while Nike rose 4.74% and Starbucks recorded gains of 4.29% as investors appeared to shrug off fears that higher gas prices would dent consumer spending.

Online dating platform operator Bumble rocketed 41.9% after the company reported 1.64 million new customers in the fourth quarter, ahead of estimates.

On the downside, online clothing retailer Stitch Fix lost 6.09% after it slashed its revenue forecasts for the year, warning shareholders that its revenue could fall.

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $203.16 5.77%
American Express Co. (AXP) $168.65 5.37%
Nike Inc. (NKE) $126.95 4.74%
Microsoft Corp. (MSFT) $288.50 4.59%
Visa Inc. (V) $199.76 4.20%
JP Morgan Chase & Co. (JPM) $133.44 4.01%
Goldman Sachs Group Inc. (GS) $333.59 3.80%
Apple Inc. (AAPL) $162.95 3.50%
Dow Chemical Co. (DOW) $59.80 3.39%
Cisco Systems Inc. (CSCO) $55.92 2.79%