US close: Stocks firmer after another turbulent day

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Major indices closed higher on Wall Street on Wednesday as Russia's ongoing incursion of neighbouring Ukraine continued to push the price of oil higher.

At the close, the Dow Jones Industrial Average was up 1.79% at 33,891.35, while the S&P 500 was 1.86% firmer at 4,386.54, and the Nasdaq Composite ended the day ahead 1.62% at 13,752.01.

The Dow opened 596.4 points higher on Wednesday, biting into the losses recorded in the previous session as Russia's invasion of Ukraine progressed.

Market participants were continuing to monitor events in eastern Europe, with reports indicating that Russian forces had penetrated the southern Ukrainian city of Kherson and surrounded nearby Mariupol.

Also in focus were rising oil prices, given that they could potentially drive up inflation, choke the US economy and pose further challenges for the Federal Reserve when it comes to shaping policy.

Bond yields were also drawing an amount of investor attention, with the yield on the benchmark 10-year Treasury note trading slightly higher at 1.796%.

On the macro front, mortgage applications fell 0.7% to 463.1 points in the week ended 25 February to the lowest level seen since December of 2019.

The fall marked the fourth straight week of declines, according to the Mortgage Bankers Association, as applications to purchase a home fell 1.8%, while those to refinance a home loan went up 0.5%.

The average fixed 30-year mortgage rate also continued to rise, advancing nine basis points to 4.15% - the highest since 2019.

Elsewhere, US job growth was more robust than expected last month, according to consultancy ADP, which said private sector payrolls in America grew by 475,000 in February, besting economists' forecasts for an increase of 310,000 by a comfortable margin.

Turning to the Federal Reserve, the US central bank will likely go ahead and begin to tighten policy when it next meets, despite "high uncertainty" stemming from the war in Ukraine.

In prepared remarks posted to the Federal Reserve's website, chairman Jerome Powell said: "The near-term effects on the US economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come, remain highly uncertain.

"Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways.

“We will need to be nimble in responding to incoming data and the evolving outlook.”

Powell also said that policy would be tightened through a mix of interest rate hikes and balance sheet reductions.

In the corporate space, Dollar Tree eked out gains of 0.15% even after it said earnings had fallen in its fourth trading quarter as a result of a deferred tax benefit.

American Eagle Outfitters jumped 4.1%, and Box was 2.69% firmer, ahead of both publishing earnings after the closing bell.

Dow Jones - Risers

Caterpillar Inc. (CAT) $192.76 5.35%
Intel Corp. (INTC) $48.87 4.38%
Dow Chemical Co. (DOW) $59.10 3.62%
Travelers Company Inc. (TRV) $173.68 3.49%
Chevron Corp. (CVX) $154.14 2.95%
Cisco Systems Inc. (CSCO) $56.15 2.80%
Nike Inc. (NKE) $135.68 2.62%
Walgreens Boots Alliance, Inc. (WBA) $46.15 2.53%
Goldman Sachs Group Inc. (GS) $336.37 2.49%
Home Depot Inc. (HD) $327.37 2.22%