Wall Street’s main indexes gained on Tuesday despite a sharp decrease in oil prices that had increased in recent weeks on fears that the Ukraine war might hinder global economic growth. Investors also looked at new data from Washington, which showed that producer prices in the United States held unchanged in February for the first time in at least a year, suggesting that the tide on inflation is turning.
The S& P 500 climbed 2.2 percent to 4,262.73 on Monday after a death cross when the 50-day moving average falls below the 200-day moving average. The Dow Jones Industrial Average rose 600 points or 1.8 percent to 33,545.92 while the Nasdaq Composite gained 2.9 percent to 12,948.62.
Commodities’ gyrations persisted. WTI Crude Oil futures fell below $100 a barrel, ending at about $96 a barrel, down almost 27% from last week’s intraday high of $130.50. On Monday, Bloomberg Intelligence’s Mike McGlone said, I absolutely predict crude oil rebound to $40 or $50 a barrel. I think this disagreement will result in a significant amount of demand destruction.
Markets are psychological first and analytical second Todd Klein, a partner at Revolution Growth, told Yahoo Finance Live. Some of the motifs from the 1980s are reappearing, such as Wall Street’s need to mount a fear wall to invest confidently in the future. Investors were keeping a close eye on the Russia-Ukraine war. In addition, they anticipated the Federal Reserve’s critical monetary policy decision on Wednesday, which may push short-term interest rates above zero for the first time since 2018. A COVID outbreak in China also presented traders with a new headline danger.