U.S. Stocks Show Stunning Turnaround As Traders Shrug Off Russian Invasion Of Ukraine

(RTTNews) - After moving sharply lower at the start of trading, stocks staged a stunning turnaround over the course of the trading session on Thursday. The tech-heavy Nasdaq showed a particularly strong rebound after hitting its lowest intraday level in almost a year.

The Nasdaq spiked 436.10 points or 3.3 percent to 13,473.59 after tumbling by as much as 3.4 percent in early trading. The Dow also rose 92.07 points or 0.3 percent to 33,223.83 after plunging by nearly 860 points, while the S&P 500 jumped 63.20 points or 1.5 percent at 4,288.70.

The initial sell-off on Wall Street came as the fears of a Russian invasion of Ukraine became a reality, with Russian Vladimir Putin declaring war on the neighboring country late Wednesday night.

Rather than focusing on contested regions in the eastern part of the country as some had expected, Putin has launched an all-out invasion of Ukraine.

U.S. President Joe Biden and other world leaders have condemned Russia for the "unprovoked and unjustified attack," which Biden predicted would cause a "catastrophic loss of life and human suffering."

"Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way," Biden said in a statement. "The world will hold Russia accountable."

Buying interest emerged over the course of the session, however, with traders picking up stocks at reduced levels as they reassessed the global economic impact of the conflict.

Later in the trading day, Biden announced what he called a new "devastating" package of sanctions against Russia, although the sanctions were not seen as "crippling" as some had expected.

The president said the new sanctions will limit Russia's ability to do business in dollars, euros, pounds and yen, stop Russia's ability to finance and grow their military and impair their ability to compete in high-tech 21st century economy.

However, the new package does not include cutting Russia off from SWIFT, a global network that connects financial institutions around the world, or direct sanctions against Putin.

Biden acknowledged the sanctions will "take time," although that likely comes as cold comfort to the Ukrainians fleeing for their lives and sheltering in subway tunnels.

A pullback by the price of crude oil may also have reduced concerns about the impact of the war, with crude for April delivery ending the day up a relatively modest $0.71 at $92.81 a barrel after topping $100 a barrel for the first time since 2014.

Sector News

Semiconductor stocks helped lead a turnaround by the tech sector, with the Philadelphia Semiconductor Index soaring by 3.7 percent after plunging by as much as 3.8 percent.

Substantial strength also emerged among networking stocks, as reflected by the 2.1 percent spike by the NYSE Arca Networking Index. The index hit its lowest intraday level in over four months in early trading.

Housing stocks also moved sharply higher over the course of the session, driving the Philadelphia Housing Sector Index up by 3 percent.

Retail, biotechnology and transportation stocks also showed strong moves to the upside, while significant weakness was visible among gold and banking stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Thursday. Japan's Nikkei 225 Index tumbled by 1.8 percent, while Hong Kong's Hang Seng Index plunged by 3.2 percent.

The major European markets also showed substantial moves to the downside on the day. While the German DAX Index has plummeted by 4 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index dove by 3.9 percent and 3.8 percent, respectively.

In the bond market, treasuries pulled back near the unchanged line after an initial spike. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 1.969 percent after hitting a low of 1.856 percent.

Looking Ahead

Reports on durable goods orders, personal income and spending and pending home sales may attract some attention on Friday, although traders are likely to keep a closer eye on the latest news out of Ukraine.