Stocks were trying to hold on to profits as oil prices plummeted and European economic data show that the Russian-Ukrainian war has not severely damaged economic activity to date.
The Dow Jones Industrial Average rose by 131 points, or 0.4%, in one day after the index fell by 448 points. The S&P 500 was up 0.4%, while the Nasdaq Composite was up 0.2%.
The price of West Texas Intermediate crude fell by about 1% on Thursday, which was a relief for investors. The rise in oil prices on Wednesday was one of the reasons for the decline in the stock market. However, the price is at $ 114.50 a barrel, about 30% above its level before the news broke in February that Russia's invasion of Ukraine was imminent. Markets see potential opportunities for exports from western oil reserves to Russia, which could reduce global supply. High oil and gas prices can cause consumers to withdraw from spending.
That doesn’t seem to be preventing companies from preparing for a strong demand — yet. The Eurozone Markit Composite Purchasing Managers Index read 54.5 in March, hitting 53.9 points, "meaning that the Russian / Ukrainian war has not grown significantly,"
Markets wanted to see the same in the U.S., too, as domestic economic data hit the ropes later in the day. But orders for durable goods fell 2.2% per month in February, after gaining 1.6% in January. Indeed, economists expect consumers to spend less money on goods and more in services as the epidemic subsides.
Markets also hope for better news from Ukraine. NATO leaders met in anticipation that the Western military alliance would send troops to Central and Eastern Europe. Biden will also attend the summit of both the G-7 and the European Union, later on Thursday. New sanctions may be imposed on Russia.
"It has now been one month since the Russian invasion of Ukraine began, and it is undoubtedly the most important ongoing issue in the markets," said Henry Allen, an analyst at Deutsche Bank. "We will have to wait and see what other measures can be announced today, but resistance to the full ban on Russian oil and gas is very much in place right now."
Overall, the stock market managed to reconvene, with the S&P 500 rising about 7% from its year-end low level earlier this month. But the market is not yet out of the woods. Much about Russia — as well as global economic data — needs to be improved. In addition, the Federal Reserve insists on lowering inflation by raising interest rates, which it is expected to do many times over the next few years, and markets are still feeling the effects of the Fed's aggression in doing so. Recently, Neel Kashkari, president of the Minneapolis Fed, often seen as dovish, appears to be turning hawkish. He said at the conference that the seven-year increase in rates — the current figure — was justified.
Shares are still struggling to rise to the high levels seen earlier this year. The S&P 500, which is still below 4,500, has seen traders come in and set up lower shares several times this year as it rises to between 4,500 and 4,600.
The picture was very mixed overseas. The pan-European Stoxx 600 fell 0.2% and the Nikkei 225 of Tokyo gained 0.3%.
