Jakarta, CNBC Indonesia – The United States (US) stock market opened green on Wednesday (9/3/2022), after Ukraine and Russia agreed to a temporary truce to open up evacuation routes for civilians.
The Dow Jones Industrial Average jumped 560 points (+1.7%) at 08:30 local time (21:30 WIB) and 20 minutes later to 632.76 points (+1.94%) to 33,265.4. The S&P 500 grew 81.5 points (+1.95%) to 4,252.2 and the Nasdaq rose 296.19 points (+2.31%) to 13,091.74.
Market volatility is driven by uncertainty among investors as they continue to evaluate the surge in commodity prices such as oil, gasoline, natural gas and precious metals. This sparked fears of a slowdown in world growth amid soaring inflation.
The price of US benchmark West Texas Intermediate (WTI) crude oil fell 4% to the range of US$ 118, while international benchmark oil, Brent, dropped 3.5% to the range of US$ 123/barrel. Wheat futures also fell, up 6.3%, to US$ 1,206 per bushel. However, palladium-like contracts continued to strengthen, by 3.8%, to US$ 3,082/ounce.
Baird Strategic Planning Analyst Ross Mayfield said that it remains to be seen whether the US central bank (Federal Reserve / The Fed) will manage a loose economy, but the US should be able to avoid a recession.
“Overall volatility will persist and the potential impact it will have in Ukraine, but US economic fundamentals still look good, especially if the Fed can navigate rate hikes without breaking demand,” he was quoted as saying. CNBC International.
Energy stocks were the belle of the market, where oil prices continued to climb to their highest levels after US President Joe Biden announced he would ban imports of Russian fossil fuels including oil in response to the attack on Ukraine.
Yesterday, the majority of the index ended lower after briefly swinging in the trading session. The Dow Jones Index ended up losing 184 points, down 0.5%. The same thing happened to the S&P 500 index, which fell 0.7% and the Nasdaq fell 0.2%.
Other commodity prices also surged including nickel which hit a new record above US$ 100,000 per metric ton. Yield (yield) The 10-year US Treasury bond rose 3.7 basis points to 1.91% on inflation concerns and prompted investors to give up bonds.
Investors will be presented with home purchase data from the US Mortgage Bankers Association and job opening data (JOLTS) in January.
CNBC INDONESIA RESEARCH TEAM
(aaf / aaf)
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