The Dow Jones rose very close to the 35,000 point mark, closing up 1.22% at 34,988.84 points. The Nasdaq jumped 2.53% to 14,139.76 points.
The New York Stock Exchange smiled once more on Tuesday following signs of easing in the Ukrainian crisis with the announcement of a partial withdrawal of Russian troops at the border.
According to final results at the close, the Dow Jones gained 1.22% to 34,988.84 points, rebounding from three consecutive losing sessions. The technology-dominated Nasdaq jumped 2.53% to 14,139.76 points. The S&P 500 gained 1.58% to 4,471.07 points.
“The shares broke the streak of three sessions of losses, following the announcement that Russia began to withdraw its troops from the Ukrainian border, calming tensions in the region a little”, underlined the analysts of Schwab.
The Russian Ministry of Defense announced that some of the 100,000 men deployed on the Ukrainian borders were returning to garrison on Tuesday, and broadcast images of armored vehicles loaded on a train.
Russian President Vladimir Putin confirmed this “partial withdrawal”. The United States, for its part, has called for a “verifiable” de-escalation.
A Russian attack on Ukraine remains “quite possible”, but we must “give every chance to diplomacy”, declared US President Joe Biden.
“According to the information, the Russians say they are withdrawing the troops but no one has seen them do it,” commented Karl Haeling of LBBW. “The market has a way of knowing what’s going on, though, and when you see how much oil has fallen, investors have a feeling that beyond official statements, the Russians aren’t going to invade,” added the analyst.
Crude prices tumbled more than 3% on Tuesday on signs of de-escalation in the Ukraine crisis.
Apart from Ukraine, investors remained focused on monetary policy, especially following the publication of the wholesale price index in January in the United States.
Producer prices (PPI index) rose 1% in January over the month, their strongest rise in a year and twice as much as expected. Over 12 months, the increase in wholesale prices is 9.7%.
“These figures reinforce the idea that the Fed’s Monetary Committee will begin its rate hikes next month with an increase of at least 0.25%,” said Mahir Rasheed, economist for Oxford Economics.
To date, investors even believe that there is a 57% chance that the Federal Reserve will proceed with a hike of 0.50 percentage points at the first meeting of the FOMC monetary committee on March 16, according to futures contracts on federal funds.
Bond yields on 10-year Treasury bills rose to 2.05%, close to their highest level since the end of July 2019, once morest 1.98% the day before.
On the business results front, the titles of the hotel group Marriott International were welcomed (+5.76% to 181.20 dollars) following the publication of a turnover and profit much better than expected in the 4th trimester.
However, the good results of Avis were poorly received (-12.05% to 171.25 dollars), some analysts criticizing the car rental company for too low prices. The action, very volatile with the vagaries of the COVID epidemic, had risen to more than 350 dollars in November.
Apart from energy (-1.39%) in particular, almost all sectors of the S&P 500 ended in the green, led by the information technology sector (+2.73%).
Sectors linked to tourism and travel such as the hotel industry but also airlines and cruise lines, helped by the fall in oil prices, were at the party.
Thus Hyatt Hotel Corporation gained 8.18%, Disney 2.57% and the title of Expedia reached a historic high at 211.93 dollars (+7.49%).
Airline American Airlines soared more than 8% dragging down its rivals while cruises enjoyed the momentum like Carnival and Norwegian Cruise Line up more than 6%.
The American microprocessor giant Intel gained 1.81% to 48.44 dollars following announcing its plan to buy Israeli company Tower SemiConductor for 5.4 billion dollars, a foundry specializing in analog semiconductors used in electronic devices. cars, medical devices and security cameras.
