Markets closed on a reversal trajectory with the stock indices making gains after a week of horrendous declines. The tech-heavy NASDAQ plunged 3.34% to close at 13,473.58 as different sectors rebounded. The Dow increased by 0.28% while the S&P 500 rose by 1.50% to close at 33,223.83 and 4,288.70 pts respectively.
The technology sector made the biggest swing of 3.47% followed by the communication services and consumer discretion sectors that jumped 3.13% and 2.54% respectively. The top gainer was Enphase Energy with a rise of 16.43% to accumulate a monthly gain of 20.14%. Other top gainers on the indices included Moderna (15.10%), Solaredge Technologies (14.86%), Palo Alto Networks (13.05%), CrowdStrike Holdings (13.01%), Mercadolibre (12.28%) and Fortinet (11.23%).
President Biden commissioned another barrage of sanctions in support from the U.S. allies that have criticized Putin’s actions in the same measure. The sanctions were targeted at limiting Russia’s ability to ‘access global markets, attract investment and utilize the U.S. dollar’. “Russia will face immediate and intense pressure on its economy, and massive costs from its isolation from the global financial system, global trade, and cutting-edge technology. This includes cutting off Russia’s largest bank from the U.S. financial system – a significant blow to its ability to function and process global trade. It also includes full blocking sanctions on Russia’s second largest bank – freezing any of its assets touching the U.S. financial system,” he said in his statement on Thursday, terming Russia’s invasion to Ukraine as a war of choice’.
The U.K. intensified the sanctions by ordering a total exclusion of Russian banks from the UK financial system and banning the Russian state and private companies from raising capital in the UK markets, whether in equity or debt. Further, the sanctions would be targeted to more than 100 entities and individuals in form of asset freezes, who are Russia’s oligarchs and have been key in financing and supporting the Ukrainian assault. Belarus was also meshed into the sanctions.
The energy had a decline of 4.45 points as the oil market set back having opened in a dramatic surge in price. The rally saw the Brent Crude Oil index trade over $105 per barrel but closed at slightly over $101.
In addition to U.K.’s sanctions, Borrison indicated commitment to end U.K.’s reliance on Russia for oil and gas by backing up the Chancellor’s decision to halt the certification of the Nord Stream 2 that would see natural gas flow from Russia to Germany through the Baltic Sea. This comes amidst imminent possibilities that Putin would cut LNG supplies to Europe. The supplies from the U.S. and Qatar, however, would be a huge support to the European bloc in alleviating the disruptions in the gas supply.
Thursday Highlights
