Inflation fears and a surge in oil prices to a two-week high weighed heavily on stocks today, with the Dow shedding 449 points, while the S&P 500 and Nasdaq also gave back most of their Tuesday gains. The dip in stocks sent the 10-year Treasury yield to its highest level since May 2019, as it breached 2.41%. Plus, Wall Street's "fear gauge" -- the Cboe Volatility Index (VIX) -- snapped its six-day losing streak. Meanwhile, investors also digested news that Ukrainian President Volodymyr Zelenskyy has called for the U.S. and other countries to put even more pressure on Russia.
The Dow Jones Average (DJI - 34,358.50) lost nearly 449 points or 0.7% for the day. Chevron (CVX) led the gainers with a 1.1% gain, while Home Depot (HD) paced laggards with a 3.9% drop.
The S&P 500 Index (SPX - 4,456.24) shed 55.4 points for the day, or 1.2%, while the Nasdaq Composite (IXIC - 13,922.60) lost 186.2 points, or 1.3% in today's session.
Lastly, the Cboe Market Volatility Index (VIX - 23.57) added 0.7 points or 2.8% for the day.
OIL BOUNDS BACK TO 2-WEEK HIGHS
Oil prices saw a sharp rebound on Wednesday, thanks to a decline in U.S. crude, gasoline and distillate inventories. This further stoked supply shortage fears amidst the Russia-Ukraine war. For the day, April-dated crude added $5.66 or 5.2%, to settle at $114.93 per barrel, marking its highest finish since March 8.
Gold prices also bounced higher, settling at their highest level since March 17 as the Federal Reserve's recently hawkish comments continue to cast a long shadow over Wall Street, leading investors back toward the perceived haven commodity. April-dated gold added $15.80 or 0.8%, to settle at $1,937.30 per ounce for today.
Comments
Log in or sign up to join the conversation.