DJIA: 34,058.75, up 834.92
S&P 500: 4,384.65, up 95.95
Nasdaq: 13,694.63, up 221.05
Stocks bounce in broad-based rally
U.S. stocks finished firmly higher in a broad-based relief rally Friday as investors continued to monitor the escalating geopolitical conflict in Eastern Europe. Russian troops were reportedly closing in on Ukraine’s capital, Kyiv, though President Putin indicated a willingness to potentially negotiate with Ukraine despite urging their military to mutiny. The U.S. joined its allies in issuing personal sanctions on President Putin. The Dow gained 834 points, notching its best session since November 2020 and ending little changed on the week (-0.1%). The S&P 500 surged 2.2%, while the Nasdaq Composite jumped 1.6%, with both benchmarks snapping two-week losing streaks (+0.8% and +1.1%, respectively). Oversold conditions and technical dynamics were also cited as factors contributing to the reprieve in the equity sell-off.
Furthermore, U.S. sanctions have thus far not directly targeted Russia’s energy industry. West Texas Intermediate crude eased 0.5% to $92.32/barrel after briefly topping $100/barrel yesterday. Treasuries edged lower as recent Federal Reserve (Fed) commentary suggested that the crisis in Ukraine was unlikely to derail the central bank’s plans for monetary policy tightening. The yield on the 10-year note rose one basis point (0.01%) to 1.97%. The core PCE deflator (the Fed’s preferred proxy for inflation) climbed 5.2% year-over-year in January, in-line with expectations but still the biggest increase since 1983. Meanwhile, a release revealed personal spending rose a stronger-than-expected 2.1% in January.
All 11 S&P 500 sectors closed in positive territory, with Materials pacing gains. In earnings, Block Inc. soared 26.1% on upbeat forward guidance. Elsewhere, ETSY Inc. rallied 15.9% on the heels of a top and bottom line beat.
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