The stock market rebounded shortly after midday Tuesday, as the Nasdaq composite and Dow Jones Industrial average jumped more than 1%.
The S&P 500 reversed higher to a 0.9% increase. The Nasdaq composite was up 1.4%. After Monday's losses, the Nasdaq's decline from its prior high exceeded 20%, a drop that fits the common definition of a bear market. Both indexes remain just above February lows.
The Dow Jones Industrial Average climbed 1.1%. Its 11% decline from the prior high qualifies as a correction in Wall Street's eyes. Small caps led, with the Russell 2000 index up 2.2% thanks to strength in small-cap energy stocks.
Volume rose on the Nasdaq and the NYSE compared with the same time on Monday.
Oil Prices At $123 A Barrel
The price of U.S. crude oil jumped more than 7% earlier but pared gains to $123 a barrel, up 3%, after midday, still around 2008 highs. President Joe Biden is expected to announce as early as today that the U.S. is banning imports of Russian oil.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33188.40 | +371.02 | +1.13 |
| S&P 500 | (0S&P5) | 4238.77 | +37.68 | +0.90 |
| Nasdaq | (0NDQC ) | 13010.16 | +179.20 | +1.40 |
| Russell 2000 | 197.92 | +4.20 | +2.17 | |
| IBD 50 | 36.63 | +0.04 | +0.11 | |
Last Update: 12:34 PM ET 3/8/2022 |
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The ban would be the latest — and perhaps most significant — in a series of sanctions against Russia since its invasion of Ukraine. But it comes at a likely cost for U.S. consumers. The average price of gasoline on Monday topped $4 a gallon, a record high. Europe's reliance on Russian oil is also complicating sanctions.
The IBD/TIPP Economic Optimism Index fell 3 points to 41, the lowest since October 2013. The six-month outlook for the U.S. economy and for personal finances slid to the lowest levels since August 2011.
Even if hostilities end in Ukraine, the tight global supply-demand situation should continue to support firm oil prices, Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management, said in a commentary.
"Higher crude oil prices should support higher cash flows and shareholder returns in 2022," Marcelli said. "The capital discipline the U.S. onshore players are demonstrating allows for significant free cash flow to fund higher dividends and share repurchases. Further, energy equities can act as an effective hedge against higher oil prices and sustained inflation."
Gold Prices Up Again
Energy Select Sector SPDR jumped 4.5% to a new high. It's up 13% so far this month.
Geopolitical uncertainly and inflation are combining to push gold prices up. Gold climbed 3.6% at midday to $2,067.20 an ounce. SPDR Gold Shares, an ETF that tracks the price of bullion, rose 3.2% to nearly a record high. It climbed 4% last week and is up 2.5% so far this week.
Treasury bonds also act as a haven, but today the yield on the 10-year Treasury note jumped 11 basis points to 1.86%. The Fed meets next week and that could result in what is expected to be the first interest-rate increase of several this year.
Among major stocks, Microsoft fell 3.2% at midday and is on pace for the lowest close since June 28. It undercut its February low. Amazon.com slid 1.8%, sinking to its lowest share price since July 2020. Nvidia fell to the lowest level since October.
Market Rally Almost Dies, Nearly Stages FTD In Whipsaw Day
IBD 50 Lags Stock Market
Innovator IBD 50 erased a loss of more than 1% and was up 0.1% as metals stocks fell while energy stocks acted best in the index.
Rio Tinto fell more than 2% and is now below the 80.54 buy point of last week's breakout. Commercial Metals also has slipped below its latest entry.
Steelmaker Cleveland-Cliffs plunged 6.5% and erased a 12% gain from the 24.77 buy point. That's a round-trip sell signal.
But Callon Petroleum added 6.2% and topped the 65.55 buy point of a cup base in heavy trading. The relative strength line also is making new highs. The stock market correction makes any stock purchase ultra risky, although energy plays have behaved better.
California Resources, a new addition to the IBD 50, gapped up 4.6%. It is close to a 46.60 buy point.
