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Wall Street closed sharply higher on Friday investors continued to assess the financial risks related to the geopolitical conflict between Russia and Ukraine. Market participants were enthused after Russia gave some indications for a diplomatic solution to the crisis. All the three major stock indexes ended in positive territory. For the week, the S&P 500 and the Nasdaq Composite ended in the green while the Dow suffered a marginal loss.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 2.5% or 834.92 points to close at 34,058.75. Notably, each and every component of the 30-stock index ended in green. The blue-chip index recorded its best single-day performance since early November 2020.
The tech-heavy Nasdaq Composite finished at 13,694.62, appreciating 1.6% or 221.04 points due to the strong performance of large-cap technology stocks. Meanwhile, the S&P 500 rallied 2.2% to end at 4,384.65. All eleven sectors of the benchmark index closed in positive territory.
The Utilities Select Sector SPDR (XLU), the Consumer Staples Select Sector SPDR (XLP), the Materials Select Sector SPDR (XLB), the Health Care Select Sector SPDR (XLV) and the Financials Select Sector SPDR (XLF) gained 3.1%, 3.2%, 3.7%, 3.1% and 3.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 9% to 27.59. A total of 12.47 billion shares were traded on Friday, lower than the last 20-session average of 12.1 billion. Advancers outnumbered decliners on the NYSE by a 4.29-to-1 ratio. On Nasdaq, a 2.63-to-1 ratio favored advancing issues.
Geopolitical Conflict Continues
U.S. stocks surged Friday after Russian news agencies reported that Kremlin spokesman Dmitry Peskov told reporters "In response to Zelensky's offer, Vladimir Putin is ready to send to Minsk a Russian delegation."
Meanwhile, White House confirmed that the U.S. government along with the U.K. and the European Union, will sanction Russian President Vladimir Putin, Russian Foreign Minister Sergei Lavrov and members of the Russian national security team, following the invasion of Ukraine.
On Feb 24, President Joe Biden said that his administration is considering more punitive actions against Russia to isolate that country from the global financial markets. This may include blocking Russian banks to access global SWIFT interbank network.
Economic Data
The Department of Commerce reported that personal consumption expenditure (PCE) price index rose 1.5% in January. December’s data was revised downward from a decline of 1% reported earlier to a decline of 1.3%. Year over year, PCE inflation jumped 6.1%, its highest since February 1982.
The Fed’s favorite inflation gauge – the core PCE pride index (excluding volatile food and energy items) - increased 0.5% in January, in line with the consensus estimate and December’s data. Year over year, core PCE inflation climbed 5.2%, its highest since April 1983.
Personal consumption surged 2.1% in January, beating the consensus estimate of 1.5%. December’s data was revised downward from a decline of 0.6% reported earlier to a decline of 0.8%. Personal income remained same with that of December, beating the consensus estimate of a decline of 0.4%. personal savings rate dropped to 6.4% in January. December’s data was revised upward from 7.9% reported earlier to 8.2%.
The National Association of Realtors reported that the pending home sales tanked 5.7% in January. The consensus estimate was for an increase of 1%. December’s data was revised upward from a drop of 3.8% to a drop of 2.3%.
Durable goods orders increased 1.6% in January, outpacing the consensus estimate of 1.1%. December’s data was revised upward to a gain of 1.2% from a decline of 0.9% reported earlier.
The University of Michigan reported that the final index of consumer sentiment for February came in at 62.8%. The preliminary data for February was 61.7%, the lowest reading in 10 months.
Weekly Roundup
Last week was a mixed one on Wall Street. S&P 500 and the Nasdaq Composite gained 0.8% and 1.1%, respectively, while the Dow lost less than 0.1%. U.S. stock markets have witnessed regular fluctuations due to Russian attack on Ukraine and an expected interest rate hike by the Fed in March.
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Stock Market News for Feb 28, 2022
Wall Street closed sharply higher on Friday investors continued to assess the financial risks related to the geopolitical conflict between Russia and Ukraine. Market participants were enthused after Russia gave some indications for a diplomatic solution to the crisis. All the three major stock indexes ended in positive territory. For the week, the S&P 500 and the Nasdaq Composite ended in the green while the Dow suffered a marginal loss.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 2.5% or 834.92 points to close at 34,058.75. Notably, each and every component of the 30-stock index ended in green. The blue-chip index recorded its best single-day performance since early November 2020.
The major gainer of the Dow was Johnson & Johnson (JNJ - Free Report) , which advanced 5%. Johnson & Johnson carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 13,694.62, appreciating 1.6% or 221.04 points due to the strong performance of large-cap technology stocks. Meanwhile, the S&P 500 rallied 2.2% to end at 4,384.65. All eleven sectors of the benchmark index closed in positive territory.
The Utilities Select Sector SPDR (XLU), the Consumer Staples Select Sector SPDR (XLP), the Materials Select Sector SPDR (XLB), the Health Care Select Sector SPDR (XLV) and the Financials Select Sector SPDR (XLF) gained 3.1%, 3.2%, 3.7%, 3.1% and 3.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 9% to 27.59. A total of 12.47 billion shares were traded on Friday, lower than the last 20-session average of 12.1 billion. Advancers outnumbered decliners on the NYSE by a 4.29-to-1 ratio. On Nasdaq, a 2.63-to-1 ratio favored advancing issues.
Geopolitical Conflict Continues
U.S. stocks surged Friday after Russian news agencies reported that Kremlin spokesman Dmitry Peskov told reporters "In response to Zelensky's offer, Vladimir Putin is ready to send to Minsk a Russian delegation."
Meanwhile, White House confirmed that the U.S. government along with the U.K. and the European Union, will sanction Russian President Vladimir Putin, Russian Foreign Minister Sergei Lavrov and members of the Russian national security team, following the invasion of Ukraine.
On Feb 24, President Joe Biden said that his administration is considering more punitive actions against Russia to isolate that country from the global financial markets. This may include blocking Russian banks to access global SWIFT interbank network.
Economic Data
The Department of Commerce reported that personal consumption expenditure (PCE) price index rose 1.5% in January. December’s data was revised downward from a decline of 1% reported earlier to a decline of 1.3%. Year over year, PCE inflation jumped 6.1%, its highest since February 1982.
The Fed’s favorite inflation gauge – the core PCE pride index (excluding volatile food and energy items) - increased 0.5% in January, in line with the consensus estimate and December’s data. Year over year, core PCE inflation climbed 5.2%, its highest since April 1983.
Personal consumption surged 2.1% in January, beating the consensus estimate of 1.5%. December’s data was revised downward from a decline of 0.6% reported earlier to a decline of 0.8%. Personal income remained same with that of December, beating the consensus estimate of a decline of 0.4%. personal savings rate dropped to 6.4% in January. December’s data was revised upward from 7.9% reported earlier to 8.2%.
The National Association of Realtors reported that the pending home sales tanked 5.7% in January. The consensus estimate was for an increase of 1%. December’s data was revised upward from a drop of 3.8% to a drop of 2.3%.
Durable goods orders increased 1.6% in January, outpacing the consensus estimate of 1.1%. December’s data was revised upward to a gain of 1.2% from a decline of 0.9% reported earlier.
The University of Michigan reported that the final index of consumer sentiment for February came in at 62.8%. The preliminary data for February was 61.7%, the lowest reading in 10 months.
Weekly Roundup
Last week was a mixed one on Wall Street. S&P 500 and the Nasdaq Composite gained 0.8% and 1.1%, respectively, while the Dow lost less than 0.1%. U.S. stock markets have witnessed regular fluctuations due to Russian attack on Ukraine and an expected interest rate hike by the Fed in March.