Stocks rebounded from a recent losing streak on Wednesday, with investors getting a temporary respite as recently surging energy prices moderated somewhat, though Wall Street remains on edge thanks to the ongoing Russia-Ukraine conflict, an upcoming inflation report and the Federal Reserve’s planned interest rate hike next week.
The market rebounded after falling since last week: The Dow Jones Industrial Average jumped 2%, nearly 700 points, while the S&P 500 rose 2.6% and the tech-heavy Nasdaq Composite 3.6%.
Stocks rallied across the board as investors hoped for a potential resolution to the Russia-Ukraine conflict (though talks have taken place, there has been little accomplished so far), with recent reports suggesting that the European Union will not make Ukraine a member, ” a headline that’s sure to be welcome news in Moscow,” explains Vital Knowledge founder Adam Crisafulli.
Oil prices, which have skyrocketed to a high of nearly $130 per barrel in recent weeks amid the ongoing war in Ukraine, took a sudden downward plunge on Wednesday, falling roughly 10%: US benchmark West Texas Intermediate now sits at $105 per barrel, while global benchmark Brent crude is trading at around $109 per barrel.
Falling commodities prices helped boost markets significantly higher, a day after President Joe Biden announced an historic US ban on Russian oil imports as the latest round of punitive sanctions against Moscow for the invasion of Ukraine.
Travel and consumer stocks in particular bounced back on Wednesday after recent fears that surging oil and gas prices would severely impact consumer spending, with shares of Nike rising 5%, Carnival Cruise Line nearly 9% and United Airlines over 8%.