Dow Jones is slowly recovering
US stock exchange hopes for ceasefire in Ukraine
03/09/2022 11:36 p.m
After the announcement of the US embargo on Russian oil, there is no further bad news for the US market for the time being. The forthcoming meeting of the Russian and Ukrainian foreign ministers is also giving encouragement to investors – they’re buying again.
Investors use the recent price losses to re-enter Wall Street. They were encouraged by reports of a ceasefire in the war in Ukraine and the planned meeting of the foreign ministers of Russia and Ukraine on Thursday in Turkey. The US Standard Value Index Dow Jones closed two percent higher at 33,286 points. The tech-heavy one Nasdaq advanced 3.6 percent to 13,255 points. The broad one S&P 500 increased 2.6 percent to 4277 points.
“For now, markets are relieved that there has been no fresh negative news since the US embargo on Russian oil was announced on Tuesday,” said market analyst Fawad Razaqzada of online broker ThinkMarkets. However, the current recovery is a typical “bear market rally”. The first bargain hunters grabbed after a price slide, forcing investors who would have bet on a continuation of the downward trend to cancel their bets. Once that happens and the rally loses momentum, selling resumes.
Crude oil was already in the midst of a sell-off: the price of the US variety STI at times fell by almost 20 percent to $ 103.63 per barrel (159 liters), as strong as it was two years ago. The United Arab Emirates and Iraq had previously shown themselves open to expanding their production to counter the current supply shortage. The Emirates alone could quickly add an additional 800,000 barrels a day to the market, said Bob Yawger, a manager at investment bank Mizhuo. “In doing so, they bring us a seventh of the way forward in replacing the Russian offer.”
Dollar goes down
For many commodities, investors took advantage of recent price increases to take profits. Palladium fell 7.6 percent to $2,938 a troy ounce. At the same time, the optimists withdrew from “safe havens”. gold fell 2.8 percent to $1994 an ounce (31.1 grams) and the dollar index, which tracks rates against major currencies, fell 1.1 percent.
When the stock values stabbed bumble with a record price increase of almost 50 percent at times. The operative quarterly result of the Tinder rival was above expectations, praised analyst John Blackledge from the asset manager Cowen. The same applies to the view. The company’s dating apps, Bumble and Badoo, have seen strong user growth.
The papers from Stitch fix fell by more than 6 percent. The online fashion retailer forecast sales of between 485 and 500 million dollars for the current quarter. Analysts had hoped for an average of around $ 560 million. The customer growth is disappointing, complained analyst Douglas Lane from the research house Lane.