The New York stock market had a strong rebound on Tuesday benefited by a drop in the price of crude oil, after hitting the lowest 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 gained 2.15% to 4,262.73 points.
Stocks were buoyed by lower crude prices, Wells Fargo analysts summed up.
A barrel of North Sea Brent crude for May delivery closed below $100 on Tuesday for the first time since the second day of Russia’s invasion of Ukraine nearly three weeks ago. While Brent yielded 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 big sigh of relief at the drop in commodity prices, 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 are also eagerly awaiting a decision by the Federal Reserve, which on Wednesday is likely to 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 its side 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 $39.26), lost ground.
