Thursday, February 24, 2022

DJIA: 33,223.83, up 92.07
S&P 500: 4,288.70, up 63.20
Nasdaq: 13,473.59, up 436.10

Stocks reverse losses amid strength in tech

U.S. stocks ended higher during a volatile session on Thursday, as dip buying of tech shares helped counter a perceived risk-off mood on Wall Street. Investors weighed the implications of Russia’s invasion of Ukraine and the subsequent sanctions announced by the U.S. and its allies. The new penalties placed limits on Russian financial intuitions and elites, as well as put export controls in place to restrict Russia’s access to semiconductors and other advance technologies. The Dow climbed 92 points, clawing back an earlier 800 point drop to avoid closing in correction territory (defined as a 10% drop from a recent all-time high). The S&P 500 and Nasdaq Composite each reversed steep early session drops to end 1.5% and 3.3% higher, respectively. Still, the broad benchmark is sitting 10.6% below its January 3 record, while the tech-heavy index is down 16% from its November 19 peak.

In commodities, West Texas Intermediate crude gained 1.4% to $93.42/barrel, after briefly topping $100/barrel for the first time since 2014. Meanwhile, perceived safe haven assets caught a bid, with a gauge of the U.S. dollar jumping 0.8% and COMEX gold settling at its best level since January 2021, climbing 0.8% to $1,925.10/ounce. Treasuries advanced, with the yield on the 10-year note down two basis points (0.02%) to 1.96%.

Seven of 11 S&P 500 sectors closed in positive territory, with Technology and Communication Services pacing the gains. In earnings, Moderna Inc. rallied 15% following robust sales and profit figures. Booking Holdings Inc. slid 7.1% as broader weakness in travel-related shares overshadows a top and bottom line beat.

Read more about it here.