The stock market recovered from earlier losses after the U.S. announced a ban of Russian oil. The price of oil continued to soar.
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The S&P 500 was up 0.9% in afternoon trading. The Nasdaq composite gained 0.9% also. Both indexes remain above February lows.
The Dow Jones Industrial Average rose 0.9% as well. Small caps held up better, with the Russell 2000 index up 2.2%.
Volume rose on the Nasdaq and the NYSE compared with the same time on Monday.
Geopolitical Tensions Escalate
President Joe Biden announced a ban on Russian oil, natural gas and coal imports to the U.S.
“Today I am announcing the United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas and energy,” Biden said from the White House on Tuesday. “That means Russian oil will no longer be acceptable at U.S. ports and the American people will deal another powerful blow to Putin’s war machine.”
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33124.32 | +306.94 | +0.94 |
| S&P 500 | (0S&P5) | 4237.79 | +36.70 | +0.87 |
| Nasdaq | (0NDQC ) | 13011.78 | +180.82 | +1.41 |
| Russell 2000 | (IWM) | 197.95 | +4.23 | +2.18 |
| IBD 50 | (FFTY) | 36.58 | -0.01 | -0.03 |
| Last Update: 3:08 PM ET 3/8/2022 | ||||
While Biden’s announcement was made in response to Russia’s invasion of Ukraine, banning Russian oil could also lead to a spike in gas prices for U.S. consumers.
The stock market remained volatile and stocks began to pull back on reports that Russia’s President Vladimir Putin has signed a decree that bans the exports of key products and raw materials until Dec. 31.
The price of U.S. crude oil jumped 4.7% to $125 a barrel, still around 2008 highs.
Oil stocks climbed to new highs. Exxon Mobil (XOM) shares rose 1.6% to 88.17, a 52- week high. Chevron (CVX) soared 6.2% to a 52-week high. BP (BP) shares climbed 4.6% and Shell (SHEL) was up 3.3%.
Russian Oil Ban Lifts Small Cap Oil Stocks
Callon Petroleum (CPE) added 6.2% and topped the 65.55 buy point of a cup base in heavy trading. But the gain faded in afternoon trading. The relative strength line made new highs.
California Resources (CRC) gapped up 4.6%. It is close to a 46.60 buy point, though it also faded some.
The IBD/TIPP Economic Optimism Index fell 3 points to 41, the lowest since October 2013. Americans’ pessimism about the U.S. economy deepened over the past month, as Russia’s invasion of Ukraine sent oil prices surging higher and the stock market sliding, the March IBD/TIPP Poll finds. The six-month outlook for the U.S. economy and for personal finances slid to the lowest levels since August 2011.
Meanwhile, steel stocks fell, dragging down the Innovator IBD 50, which fell 0.5%. Steel producer Cleveland-Cliffs (CLF) fell over 9%. The stock erased prior gains above a 24.77 double-bottom entry. That counts as a round-trip sell signal. Another steelmaker, Commercial Metals (CMC), also has slipped below its latest entry.
Geopolitical uncertainly and inflation are combining to push gold prices up. Gold climbed 2.6% to $2,047 an ounce. SPDR Gold Shares (GLD), an ETF that tracks the price of bullion, rose 3.3% to nearly a record high.
Treasury bonds also act as a haven, but today the yield on the 10-year Treasury note jumped 9 basis points to 1.86%.
Follow Michael Molinski on Twitter @IMmolinski
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