The Nasdaq and the S&P 500 closed sharply higher on Thursday, in a dramatic turnaround from earlier in the session, after US President Joe Biden announced tough new sanctions against Russia after Moscow initiated a total invasion of Ukraine. The Dow Jones also ended with gains.
After consulting his peers from the Group of Seven (G7) countries, Biden announced measures to impede Russia’s ability to do business in the world’s major currencies, along with sanctions against banks and state-owned companies.
The indices, which had dropped earlier in the day on the news of the invasion, reached session highs after Biden’s comments. The Nasdaq lost more than 3% at the opening.
“The tough stance being taken by the US and Europe is sending a strong message to the financial markets that they are going to try to cripple the Russian economy as much as they can.said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“From one perspective, that’s positive.”, he said, adding that the market sale may not be over. “Looking ahead, we’re still subject to probably higher oil prices, probably higher commodity prices”.
Based on preliminary data, the S&P 500 gained 62.62 points, or 1.50%, to 4,288.12 points, while the Nasdaq gained 435.97 points, or 3.27%, to 13,464.29. The Dow Jones Industrial Average advanced 86.95 points, or 0.26%, to 33,218.71.
The information technology sector gave the S&P 500 its biggest boost, reversing what had happened on Wednesday.
Ukrainian forces fought the Russian invaders on three fronts on Thursday, after Moscow mounted an assault by land, sea and air in the biggest attack on a European state since World War II.
