Dow Jones closes in positive territory
Bargain hunting in the tech sector drives stock exchanges
03/18/2022, 10:20 p.m
Wall Street is doing well in the face of the Ukraine war and the aftermath of the US interest rate hike – surprisingly well for many observers. Investors are not deterred by new horror stories about civilian casualties or by Russia’s president.
At the end of the week, US investors grabbed technology stocks in particular. The Dow Jones index of standard values closed 0.8 percent higher at 34,754 points. The tech-heavy Nasdaq advanced 2.1 percent to 13,893 points. The broad S&P 500 gained 1.2 percent to 4463 points.
“The bottom seems to be in, the tech sector is down so much from its highs that it’s bound to attract people looking for opportunities,” said strategist Rick Meckler of Cherry Lane Investments. Stocks from Meta Platforms, Microsoft, Nvidia, Amazon.com and Google-owner Alphabet rose between 1.7 percent and 6.8 percent. Investors focused on the talks between the USA and China on the situation in Ukraine.
US President Joe Biden has warned China’s President Xi Jinping against military aid to Russia in the war against Ukraine, according to American sources. During the video call on Friday, Biden pointed out the consequences not only for the United States but for the whole world, a US government official said. Biden presented his views openly and directly in the almost two-hour conversation. We will now see what decisions China will make in the coming days and weeks.
It had been agreed to keep communication channels open in order to be able to discuss differences between the two countries. The nervousness remains high in view of the ongoing fighting in Ukraine, said analyst Timo Emden from Emden Research. Hopes for a ceasefire have so far not been fulfilled. “Investors on both sides of the Atlantic are increasingly recognizing that communication between Kyiv and Moscow is a stalling tactic,” said Emden.
On the oil market, prices went up and down
Meanwhile, after its emergency interest rate hike at the end of February as a result of the Ukraine war, the Russian central bank kept its feet still and left the key interest rate at 20 percent. However, she warned that inflation would continue to rise and the economy would shrink. After a lot of back and forth, the ruble weakened. The dollar, on the other hand, rose 1.1 percent to 104.30 rubles.
On the oil market, prices went up and down. The North Sea variety Brent recently cost around 1.2 percent more at $107.87 per barrel. On Thursday, it had risen by 8.8 percent. The supply crunch from traders avoiding Russian barrels, faltering nuclear talks with Iran, dwindling oil supplies and worries about a spate of Covid-19 cases in China continued to woo investors.
Chinese companies listed on Wall Street were particularly in demand. Didi Global rose almost 60 percent, Bilibili rose almost 16 percent, Alibaba almost eight percent. China’s Vice Premier Liu He on Wednesday suggested pro-market government measures. He also spoke of progress in talks between Chinese and US regulators on US-listed Chinese companies.
China had tightened the rules for IPOs of domestic technology companies abroad at the beginning of the year, sending prices in the sector plummeting. FedEx shares fell sharply after the Deutsche Post competitor’s earnings growth for the quarter fell short of expectations. The titles gave way to almost four percent. Moderna shares are up 6.3 percent. The company is applying to the US health authority for approval of a second booster vaccination for all adults.