• The S&P 500 posts its best day since June 2020
  • Travel and leisure stocks rise sharply
  • Energy stocks fall after strong recovery in 2022
  • Indices up: Dow 2%, S&P 2.57%, Nasdaq 3.59%

March 9 (Reuters) – U.S. stocks surged on Wednesday, led by financials and technology stocks, rebounding from several days of declines as oil prices fell sharply after stoking inflation fears and investors gauged the evolution of the Ukrainian crisis.

The S&P 500 posted its biggest one-day percentage gain since June 2020, while the Nasdaq recorded its biggest gain since March 2021.

Global oil prices recorded their biggest fall since the early days of the pandemic nearly two years ago, after the United Arab Emirates said the OPEC member would support increased production on a market in disarray due to supply disruptions caused by sanctions imposed on Russia for its conflict with Ukraine. .

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A sharp rise in oil and other commodities has raised concerns about a further jolt in rising inflation and the potential for slowing economic growth. Read more

“I think this is an oversold rally on the commodity cooling,” said Walter Todd, chief investment officer at Greenwood Capital. “The stocks have been selling quite aggressively for the past few days. I don’t know if that definitely changes the direction of things.”

The Dow Jones Industrial Average (.DJI) rose 653.61 points, or 2%, to 33,286.25, the S&P 500 (.SPX) gained 107.18 points, or 2.57%, to 4,277 .88 and the Nasdaq Composite (.IXIC) added 460.00 points, or 3.59%, to 13,255.55.

The heavyweight technology group (.SPLRCT) and financials (.SPSY) were the best performing sectors in the S&P 500, up 4% and 3.6% respectively.

Energy (.SPNY), which was the sector’s best performer in 2022, fell 3.2% as benchmark Brent crude fell to around $110 a barrel from more than $130 earlier in the year. week.

Travel and leisure stocks, which have been hit hard recently, also soared, with shares of Carnival Corp (CCL.N) up 8.8% and United Airlines Holdings up 8.3% .

“The market is taking a breather, consolidating after this downtrend which has seen a lot of stocks get really, really hammered, especially on the growth side of the market,” said Anu Gaggar, global investment strategist for Commonwealth Financial Network. .

In the latest developments, Ukraine has accused Russia of bombing a children’s hospital in the besieged port of Mariupol during an agreed ceasefire to allow civilians trapped in the town to escape. Read more

Ukrainian Foreign Minister Dmytro Kuleba was due to meet Russian Foreign Minister Sergei Lavrov in Turkey on Thursday.

Stocks struggled as concerns over the Russia-Ukraine crisis deepened a selloff initially fueled by concerns over rising bond yields, with the Federal Reserve set to tighten monetary policy this year to fight inflation.

On Monday, the Nasdaq confirmed it was in a bear market, falling more than 20% from its all-time high, while the Dow Jones Industrial Average confirmed it was in a correction, closing more than 10% below its record high.

Investors had been waiting for Thursday’s U.S. consumer price report as a key data release ahead of the March 15-16 Fed meeting.

Advancing issues outnumbered declining ones on the NYSE by a ratio of 2.75 to 1; on the Nasdaq, a ratio of 3.66 to 1 favored advancers.

The S&P 500 posted two new 52-week highs and three new lows; the Nasdaq Composite recorded 32 new highs and 53 new lows.

About 14 billion shares changed hands on US exchanges, compared to the daily average of 13.6 billion over the past 20 sessions.

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Reporting by Lewis Krauskopf in New York, Devik Jain and Sabahatjahan Contractor in Bengaluru; Editing by Saumyadeb Chakrabarty, Sriraj Kalluvila and Lisa Shumaker

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