The New York stock market had a strong rebound this Tuesday benefited by a drop in the price of crude oilafter touching lows since February on Monday.
At the closing bell the Dow-Jones gained 1.82% to 33,545.92 points, the technological nasdaq 2.92% to 12,948.62 units after falling 2% on Monday. AND the S&P 500 it gained 2.15% to 4,262.73 points.
Stocks were buoyed by lower crude prices, Wells Fargo analysts summed up.
The North Sea Brent crude oil barrel for delivery in May closed on Tuesday under $100 for the first time since the second day of the Russian invasion of Ukraine almost three weeks ago. While Brent lost 6.53%, WTI fell 6.37%.
“China had the biggest impact” on crude prices on Tuesday, argued Stephen Schork of Schork Report. The Chinese decision to order the confinement of tens of millions of people to contain covid outbreaks “clearly raises concerns in the market about the demand” for crude oil.
“The market breathed a great sigh of relief at the drop in prices of raw materials, mainly food and energy”Adam Sarhan of 50 Park Investment told AFP.
“The rise in food and energy prices acts as an indirect tax on consumers and companies,” explained the investment adviser.
Investors also await with expectation the decision of the Federal Reserve which on Wednesday will likely announce a hike in its benchmark interest rates for the first time in two years.
Its president, Jerome Powell, is in favor of a rise of 0.25%, in a context of persistent inflation.
While “volatility persists due to the conflict in Ukraine,” Schwab analysts noted.
Among the values of the day, the large airlines increased their billing prospects for the current quarter. Thus American Airlines (+9.26%), United Airlines (+9.19%) and Delta Air Lines (+8.70%) announced an increase in their sales projections.
Apple gained 2.97% to $155.09, Amazon 3.89% to $2,947.33 and Netflix 3.85% to $343.75.
Stocks from oil services groups, such as Schlumberger (-5.51% to US$39.26), lost ground.
Source: AFP
