In a dramatic market reversal, U.S. stocks ended sharply higher on Thursday, led by a 3% gain in the Nasdaq. After Moscow launched an all-out invasion of Ukraine, President Joe Biden announced new sanctions against Russia.
The rise in the share market
The S&P 500 index rose more than 1%, snapping a four-day losing streak fueled by concerns about the escalating crisis. The Dow also ended the day in the green.
On the news of Russia’s invasion of Ukraine, all three major indexes sold off early in the day, with the Nasdaq down more than 3% at the open. They hit session highs and rallied into the close following Biden’s remarks.
Biden measures to impede
Biden announced measures to impede Russia’s ability to do business in the world’s major currencies. He also added that sanctions against banks and state-owned enterprises, after consulting with counterparts from the Group of Seven nations, reported by the Moneycontrol.
Concerns of war
On Thursday, Ukrainian forces fought Russian invaders on three fronts. The White House has warned that the conflict could lead to higher fuel prices in the United States. But U.S. officials are working with counterparts in other countries to release additional oil from global strategic crude reserves in a coordinated manner.
Investors have been concerned about how rising inflation will affect the Federal Reserve’s outlook and interest rate hikes.
Indices that remained positive
In a reversal of recent trends, the information technology sector (.SPLRCT) rose 3.5%. The Dow Jones Industrial Average (.DJI) increased by 0.28%, the S&P 500 (.SPX) increased by 1.50%, and the Nasdaq Composite (.IXIC) increased 3.34%.
The CBOE Volatility Index (.VIX), dubbed “Wall Street’s Fear Gauge,” finished the day lower.
On the NYSE, advancers outnumbered decliners by a 1.14-to-1 ratio; on the Nasdaq, advancers outnumbered decliners by a 1.53-to-1 ratio.
The total number of shares traded on U.S. exchanges was 17.52 billion, compared to the 12.1 billion average for the last 20 trading days.