We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street rebounded on Wednesday regaining a large part of losses it incurred in the previous day. Market participants’ sentiment strengthened after the Fed Chairman said that the central bank may not opt for an aggressive rate hike in March. Moreover, investors also continue to assess the geopolitical conflict between Russia and Ukraine. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.8% or 596.40 points to close at 33,891.35. Just 1 component of the 30-stock index ended in red while 29 finished in positive zone.
The tech-heavy Nasdaq Composite finished at 13,752.02, surging 1.6% or 219.56 points due to the strong performance of large-cap technology stocks. Meanwhile, the S&P 500 climbed 1.9% to end at 4,386.54. All 11 broad sectors of the benchmark index closed in positive territory.
The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI), the Energy Select Sector SPDR (XLE) and the Financials Select Sector SPDR (XLF) rallied 2.2%, 2.1%, 2.2%, 2.1%, 2.3% and 2.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.7% to 30.74. A total of 13.1 billion shares were traded on Wednesday, higher than the last 20-session average of 12.4 billion. Advancers outnumbered decliners on the NYSE by a 2.60-to-1 ratio. On Nasdaq, a 1.95-to-1 ratio favored advancing issues.
Russia-Ukraine Crisis Intensify
The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy has approached the Ukrainian capital of Kyiv. The Russian authority has stepped up its shelling of Kharkiv, Ukraine’s second-largest city. The United States also deployed more troops in Europe.
Meanwhile, over the weekend, the U.S. and its allies agreed to exclude selected Russian banks from the SWIFT interbank messaging system. This measure will effectively detach Russian banks from the global financial network.
The crude oil prices also maintained their northbound journey. The U.S. benchmark – the WTI crude – for April Contract, rose 7%, to settle at $110.60 a barrel, marking the highest for a front-month contract since May 2011.
In his testimony to the U.S. House of Representatives Financial Services Committee, the Fed Chairman Jerome Powell said that the first rate hike after three years will come in March. However, he hinted that the central bank may not adopt an aggressive rate hike policy in order to combat soaring inflation as the “implications for the U.S. economy are highly uncertain” from the Russia - Ukraine war.
Per CME FedWatch, currently, there are 95% probability that the Fed will increase interest rate by 25 basis points in March. Just a few weeks ago, there were 75% probability that the rate hike will go up to 50 basis points.
Economic Data
Automatic Data Processing Inc. (ADP - Free Report) reported that the U.S. private sector has added 475,000 jobs in February. Moreover, January’s data was revised upward from a loss of 301,000 to a gain of 509,000.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Mar 3, 2022
Wall Street rebounded on Wednesday regaining a large part of losses it incurred in the previous day. Market participants’ sentiment strengthened after the Fed Chairman said that the central bank may not opt for an aggressive rate hike in March. Moreover, investors also continue to assess the geopolitical conflict between Russia and Ukraine. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.8% or 596.40 points to close at 33,891.35. Just 1 component of the 30-stock index ended in red while 29 finished in positive zone.
The tech-heavy Nasdaq Composite finished at 13,752.02, surging 1.6% or 219.56 points due to the strong performance of large-cap technology stocks. Meanwhile, the S&P 500 climbed 1.9% to end at 4,386.54. All 11 broad sectors of the benchmark index closed in positive territory.
The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI), the Energy Select Sector SPDR (XLE) and the Financials Select Sector SPDR (XLF) rallied 2.2%, 2.1%, 2.2%, 2.1%, 2.3% and 2.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.7% to 30.74. A total of 13.1 billion shares were traded on Wednesday, higher than the last 20-session average of 12.4 billion. Advancers outnumbered decliners on the NYSE by a 2.60-to-1 ratio. On Nasdaq, a 1.95-to-1 ratio favored advancing issues.
Russia-Ukraine Crisis Intensify
The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy has approached the Ukrainian capital of Kyiv. The Russian authority has stepped up its shelling of Kharkiv, Ukraine’s second-largest city. The United States also deployed more troops in Europe.
Meanwhile, over the weekend, the U.S. and its allies agreed to exclude selected Russian banks from the SWIFT interbank messaging system. This measure will effectively detach Russian banks from the global financial network.
The crude oil prices also maintained their northbound journey. The U.S. benchmark – the WTI crude – for April Contract, rose 7%, to settle at $110.60 a barrel, marking the highest for a front-month contract since May 2011.
As a result, share prices of oil giants like Exxon Mobil Corp. (XOM - Free Report) and ConocoPhillips (COP - Free Report) have gained 1.7% and 1.1%, respectively. Both stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Powell’s Testimony
In his testimony to the U.S. House of Representatives Financial Services Committee, the Fed Chairman Jerome Powell said that the first rate hike after three years will come in March. However, he hinted that the central bank may not adopt an aggressive rate hike policy in order to combat soaring inflation as the “implications for the U.S. economy are highly uncertain” from the Russia - Ukraine war.
Per CME FedWatch, currently, there are 95% probability that the Fed will increase interest rate by 25 basis points in March. Just a few weeks ago, there were 75% probability that the rate hike will go up to 50 basis points.
Economic Data
Automatic Data Processing Inc. (ADP - Free Report) reported that the U.S. private sector has added 475,000 jobs in February. Moreover, January’s data was revised upward from a loss of 301,000 to a gain of 509,000.