May 29, 2022

Westside People

Complete News World

Wall Street closed higher as calming geopolitical fears triggered a broad based rally

Wall Street closed higher as calming geopolitical fears triggered a broad based rally

NEW YORK (Reuters) – Wall Street closed sharply higher on Tuesday, as signs of easing tension along the Russia-Ukraine border fueled a risky session.

All three major indices made solid gains on the day, with technology stocks and market-leading tech neighbors providing the biggest boost and putting the Nasdaq ahead.

The geopolitical heat eased somewhat after Russia said it had withdrawn some of its forces near the Ukrainian border, sparking bullish sentiment in stocks and causing crude oil prices to slide while allaying supply concerns. Read more

Register now to get free unlimited access to Reuters.com

The announcement received cautious responses, and the United States and NATO said they had not yet seen evidence of a withdrawal. Read more

Stocks pared gains briefly late in the session, when US President Joe Biden said that while diplomatic efforts were underway.

“Nice walk today thanks to (Russian President Vladimir) Putin,” said David Carter, managing director of Wealthspur Advisors in New York.

“Markets are moving based on Putin or (Federal Reserve Chairman Jerome) Powell,” Carter added. “Putin and his intentions with Ukraine and Powell and his intentions regarding interest rates”.

CBOE Market Volatility Index (.VIX) It fell from its highest level in three weeks.

On the economic front, a report from the Labor Department showed producer prices rose in January at twice the expected rate, reinforcing economists’ expectations that the Federal Reserve will tackle persistently persistent inflation by aggressively raising key interest rates. Read more

“Inflation data suggests that prices are going up, but the markets already know that,” Carter said.

See also  Oil fell 5% on speculation that the US-Russian oil embargo will not add to the supply shock

The chart below shows the Producer Price Index (PPI) data, along with other leading indicators, and how far above the Fed’s average annual 2% inflation target is:

inflation

The market has now priced better than expectations that the central bank will raise the target rate for the federal funds by 50 basis points at its March monetary policy meeting.

“The market is now priced in for a bolder Fed, and outside of geopolitics there is lower uncertainty,” said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. “But the market is never so uncertain, so you’re always dealing with possibilities.”

According to preliminary data, the S&P 500 . index (.SPX) It rose 69.30 points, or 1.57%, to close at 4,470.97 points, while the Nasdaq Composite Index (nineteenth) It rose 346.57 points, or 2.51%, to 14,137.49 points. Dow Jones Industrial Average (.DJI) It rose 421.15 points, or 1.22%, to 3,4987.32 points.

The fourth-quarter reporting season is entering its last stretch, with 370 companies in the S&P 500 reporting. Of those, 78.1% beat analyst estimates, according to preliminary Refinitiv data.

“It’s good that the strength of earnings underlies these macro issues,” Mayfield added.

Philadelphia Semiconductor Index (.sox) It rose after Intel Corp. announced a $5.4 billion deal to buy Israel’s semiconductor tower for chip maker (TSEM.TA). Read more

Restaurant Brands International surged after the fast-food operator beat estimates of quarterly earnings and revenue. Read more

See also  Roblox's stock sank. Earnings were worse than expected.

Marriott International Hotel (March) It also beat Street expectations due to higher occupancy rates, sending its shares soaring. Read more

Other travel-related companies advanced, with the S&P 1500 . airline index (.SPCOMAIR) The hotels/restaurants/entertainment index (.SPCOMHRL) Both are gaining ground.

Shares of cloud infrastructure company Arista Networks jumped after forecasting better-than-expected revenue for the current quarter.

Register now to get free unlimited access to Reuters.com

Stephen Kolb reports. Additional reporting by Devik Jain, Susan Mathew and Shreyachi Sanyal in Bengaluru; Edited by Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.