Technology stocks lead the rise in the stock market in America
US stocks continued their gains on Thursday, after fears of the regional banking crisis spreading to other sectors of the economy receded, leading the Nasdaq index to gains, as investors continued to buy stocks of major technology companies, as a safe haven, if new concerns emerged in the markets.
During today’s trading, the Dow Jones Industrial Average rose more than 140 points, representing 0.43% of its value, the S&P 500 rose by 0.57%, while the Nasdaq index achieved nearly three-quarters of a percentage point of gains.
The VIX index, Wall Street’s favorite measure for measuring the extent of the S&P 500’s turmoil over the next 30 days, fell to the 19 level, down from the 30 level, which it recorded in the middle of this month, in the wake of the collapse of Silicon Valley and Signature banks, and the approach of US regional banks to a crisis. Sharp liquidity.
Relatedly, weekly jobless claims increased by 7,000 to 198,000, raising hopes that the Federal Reserve will slow its tightening campaign if the labor market continues to slow.
European stocks also rose today, Thursday, to the highest level in about three weeks, supported by positive results from the giant retail company, “H & M”, and the wave of US stocks rising this week.
The Stoxx Europe 600 index ended the day’s trading up 1.1%, its highest level since March 10, tracking the impact of the global market recovery. The real estate sector in Europe jumped 3.7%.
The banking sector index rose 1.5% to its highest level in a week, with investors excited after the sale of the assets of the collapsed US Silicon Valley bank, and the acquisition of “UBS” on the troubled Credit Suisse bank.
H&M shares jumped 16.3%, leading gains on the Stoxx 600 index, after the world’s second-largest clothing retailer announced a surprise operating profit for the December-February period. The retail sector index rose 3.7%.
Oil prices rose more than 1% today, Thursday, supported by the decline in US crude stocks, and the halt in exports from the Kurdistan region of Iraq, which overshadowed the impact of the decrease in Russian supplies to a less than expected degree.
Brent crude futures rose 99 cents, or 1.3%, to $79.27 a barrel, and US West Texas Intermediate crude rose $1.40, or 1.9%, to $74.37 a barrel, upon settlement.
Prices were boosted after data from oil-producing companies reported that they had stopped or reduced production in a number of oil fields in the semi-autonomous Kurdistan region in northern Iraq after stopping the export of crude from a pipeline in northern Iraq, with more disruptions expected in the future.
Iraq was forced to stop about 450 thousand barrels per day of crude oil exports, or the equivalent of 0.5% of global oil supplies, from the Kurdistan region on Saturday through a pipeline extending from its oil fields in northern Kirkuk to the Turkish port of Ceyhan.
But Citi analysts said today, “Changes in Iraq’s internal politics may lead to a permanent political settlement very soon,” and estimated that pipeline flows could increase by about 200,000 barrels per day.
The US Energy Information Administration said, in a report yesterday, Wednesday, that US crude oil inventories unexpectedly fell in the week ending March 24 to their lowest level in two years.
Crude stocks fell by 7.5 million barrels, while analysts had expected, in a Reuters poll, an increase of 100,000 barrels.
These factors offset the downward trend, after a less-than-expected decline in Russian crude oil production in the first three weeks of March.
Sources familiar with the data told Reuters that production fell by 300,000 bpd, compared to a target cut of 500,000 bpd, or about 5 percent of Russian production.
Markets are now awaiting US spending and inflation data due to be released tomorrow, Friday, and their impact on the US dollar.
