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Wall St Closes Higher after Biden-XI Talks End, Oil Steadies

Reuters2022-03-19

* FedEx falls on lower-than-expected quarterly earnings

* Moderna up on seeking FDA authorization for second booster

* Indexes rise: Dow 0.8%, S&P 500 1.17%, Nasdaq 2.05%

March 18 (Reuters) - Wall Street's three major indexes closed higher on Friday, with the biggest boost from recently battered technology stocks, after talks between U.S. President Joe Biden and Chinese President Xi Jinping over the Ukraine crisis ended without big surprises.

Investors were also relieved by slowing gains in oil prices as they continued to digest the Federal Reserve's Wednesday interest rate increase and its aggressive plan for further hikes aimed at combating soaring inflation.

"The read out from the meeting was as expected," said Art Hogan, chief market strategist at National Securities in New York regarding the Xi/Biden talks. He said that since Russia/Ukraine talks were continuing, investors were tending toward optimism.

"Regarding Russia, Ukraine, the market has been more positive on news from the diplomatic front than negative on the escalation."

Hogan also cited calmer oil prices and relief that the highly anticipated Fed news was finally out.

"Instead of having fears and trepidation of what the Fed might do we have clear roadmap for monetary policy," he said.

In addition to less onerous than expected Fed actions, Steve Sosnick, chief strategist at Interactive Brokers in Greenwich, Connecticut said investors were reassured that U.S. crude oil prices weren't too far above $100 on Friday after recently surpassing $130.

"At least for this week oil has found a level. That's someway positive for the market as a rising oil price is overweighted in consumer minds as an inflationary indicator," said Sosnick. "Does the market like oil around $100? No. But is it happier that it's around $100 than going up $20 every day? Of course."

Investors were also monitoring for any impact from Friday's "triple witching," in which investors unwind positions in futures and options contracts before they expire, which can lead to volatility and trading volume.

On Friday the expirations appeared to boost volume as 18.47 billion shares changed hands on U.S. exchanges compared with the 14.56 billion moving average for the last 20 sessions.

The Dow Jones Industrial Average rose 274.17 points, or 0.8%, to 34,754.93, the S&P 500 gained 51.45 points, or 1.17%, to 4,463.12 and the Nasdaq Composite added 279.06 points, or 2.05%, to 13,893.84.

Wall Street's three main indexes boasted their biggest weekly percentage gains since early November 2020 with the S&P adding 6.2% while the Dow rose 5.5% and the Nasdaq jumping 8.2%.

Ten of the 11 major S&P 500 sectors closed higher, with heavyweight technology and consumer discretionary both finishing up 2.2% while communication services rising 1.4%.

The only declining sector was utilities which ended the session down 0.9%.

Moderna Inc closed up 6.3% after the drugmaker submitted a request to the U.S. Food and Drug Administration to allow for a second booster of its COVID-19 vaccine.

Shares of Boeing Co finished up 1.4% after reports the planemaker was edging toward a landmark order from Delta Air Lines for up to 100 of its 737 MAX 10 jets.

But shares in U.S. delivery firm FedEx Corp slumped almost 4% after a weaker-than-expected quarterly earnings report.

Advancing issues outnumbered declining ones on the NYSE by a 2.20-to-1 ratio; on Nasdaq, a 2.19-to-1 ratio favored advancers.

The S&P 500 posted 19 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 44 new highs and 41 new lows.

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Comment528

  • Cliffy
    ·2022-03-21
    Ok
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  • Remotecam
    ·2022-03-21
    Last week Monday it was gloom and doom.  By Friday it's "US economy strong and  resilient to withstand interest rate hikes".  No recession. Ukraine war still raging but report negotiations "positive", when actually  not going anywhere.  Stay cautious.  Things can change 180 degrees anytime.  $E-mini Nasdaq 100 - main 2203(NQmain)$ 
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  • Rick13
    ·2022-03-21
    Ok
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  • AA23
    ·2022-03-20
    Look forward to better days... 
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  • saral
    ·2022-03-20
    Good
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  • saral
    ·2022-03-20
    Good
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  • andrew123
    ·2022-03-20
    Like 
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  • MasterStonker
    ·2022-03-19
    📈📈📈📈📈📈📈📈📈📈📈📈📈📈
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  • Xiaomiiiii
    ·2022-03-19
    Like please
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  • adonis123
    ·2022-03-19
    Any peace talk is good
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  • Renzo Piano
    ·2022-03-19
    [Claw] 
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  • Renzo Piano
    ·2022-03-19
    [OK] 
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  • Joru
    ·2022-03-19
    I
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  • quantarize
    ·2022-03-19
    Great
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  • Allenchang
    ·2022-03-19
    Latest 
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  • alvinherexD
    ·2022-03-19
    Gg
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  • chelseaeng
    ·2022-03-19
    Like
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  • Bwys1990
    ·2022-03-19
    Lik
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