After moving sharply higher early in the session, stocks continue to see substantial strength in afternoon trading on Wednesday. The major averages have all rebounded strongly after closing lower for four consecutive sessions.
The major averages have pulled back off their best levels in recent trading but continue to post strong gains. The Dow is up 663.89 points or 2 percent at 33,296.53, the Nasdaq is up 420.40 points or 3.3 percent at 13,215.95 and the S&P 500 is up 104.91 points or 2.5 percent at 4,275.61.
A pullback by commodities prices is contributing to the rebound on Wall Street, as the recent surge in prices led to worries about even higher inflation.
Crude oil for April delivery is currently plummeting $14.60 to $109.10, while gold for April delivery is plunging $54.70 to $1,988.60 an ounce.
The price of crude oil is giving back ground as the U.S. has announced a ban on Russian energy imports but European allies declined to follow suit.
The U.K. and European Union have announced plans to reduce their dependence on Russian energy, although the moves are expected to be far less disruptive to global markets.
The markets are also benefiting from bargain hunting, as traders look to pick up stocks at reduced levels following the recent weakness.
The tech-heavy Nasdaq ended yesterday’s trading at its lowest closing level in a year, while the Dow fell to an eleven-month closing low and the S&P 500 dropped to its lowest closing level since last June.
Sector News
Airline stocks are extending the rebound seen in the previous session, driving the NYSE Arca Airline Index up by 7.4 percent. The index continues to recover after ending Monday’s trading at its lowest closing level in well over a year.
A continued jump in treasury yields has also contributed to substantial strength among financial stocks, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index both surging by 4.6 percent.
Housing stocks have also moved sharply higher over the course of the session, resulting in a 4.1 percent spike by the Philadelphia Housing Sector Index.
Chemical, semiconductor, networking and biotechnology stocks are also seeing considerable strength, while energy and gold stocks are pulling back along with commodities prices.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. China’s Shanghai Composite Index slumped by 1.1 percent, while Australia’s S&P/ASX 200 Index jumped by 1 percent.
Meanwhile, the major European markets moved sharply higher on the day. While the U.K.’s FTSE 100 Index spiked by 3.3 percent, the French CAC 40 Index and the German DAX Index skyrocketed by 7.1 percent and 7.9 percent, respectively.
In the bond market, treasuries are extending the steep drop seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 6.6 basis points at 1.938 percent.
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