© Reuters. FILE PHOTO: The Nasdaq logo is displayed at the Nasdaq market site in Times Square in New York, U.S., December 3, 2021. REUTERS/Jeenah Moon
By Devik Jain and entrepreneur Sabahatjahan
(Reuters) – U.S. stocks rose in volatile trading on Tuesday as investors gauged rapid developments around the Ukraine crisis as the United States banned Russian imports of oil and other energy amid the invasion .
Energy stocks soared 1.9%, extending a seven-session rally, as President Joe Biden announced the ban, underscoring strong bipartisan support for a move he said would drive prices higher energy in the United States.
Britain has said it will phase out imports of Russian petroleum and petroleum products by the end of 2022.
The United States is not a major buyer of Russian oil, but the ban is likely to pressure its allies to wean their economies off Russian energy.
“You have a situation where investors who were caught overweight tech and underweight energy are now catching up on the back of soaring commodity prices,” said John Petrides. , portfolio manager at Tocqueville Asset Management in New York.
Megacaps Amazon.com Inc (NASDAQ:), the owner of Google Alphabet (NASDAQ:) Inc, Tesla (NASDAQ:) Inc and Meta Platforms rose slightly after falling on Monday.
surged past $130 a barrel along with other commodities, setting off alarm bells over soaring inflation and the impact on global economic growth.
“The idea that the economy will slow down tremendously on the margins and that we may not get a commensurate drop in interest rate expectations because we have to fight inflation. Those two opposing forces make investors’ game right now,” said Josh Wein, portfolio manager at Hennessy Funds.
Six of the 11 major S&P sectors advanced, with financials advancing 1.1%, after falling for three straight sessions.
The banks index added a trailing 2.4%, which climbed above 1.86% after hitting a two-month low on Monday. ()
Stocks have struggled since the start of the year as concerns over the Russia-Ukraine crisis deepened a selloff initially fueled by expectations of the Federal Reserve tightening monetary policy to fight inflation.
The Nasdaq ended Monday down 20.1% from its record close on Nov. 19, confirming that the tech-heavy index was in a bear market, by a widely used definition.
As of 12:33 p.m. ET, the rose 445.47 points, or 1.36%, to 33,262.85, the gained 47.42 points, or 1.13%, to 4,248.51 and gained 207.06 points, or 1.61%, to 13,038.02.
In Ukraine, Kiev accused Moscow of bombing a humanitarian corridor it promised to open to allow residents to flee the beleaguered port of Mariupol. Russia calls the campaign a “special operation”.
caterpillar Inc (NYSE:) jumped 8% after Jefferies upgraded shares of the construction equipment maker to “buy” from “hold” as a hedge against inflation and the prospect of additional investment.
The CBOE Volatility Index fell after closing at its highest level since January 2021 in the previous session.
Advancing issues outnumbered declining issues with a 1.6-to-1 ratio on the NYSE and a 1.9-to-1 ratio on the Nasdaq.
The S&P 500 posted 18 new 52-week highs and 76 new lows while the Nasdaq posted 46 new highs and 701 new lows.