Stocks rose on Tuesday, amid hopes for a ceasefire in the war between Russia and Ukraine.
advanced 338 points, or 1%, while the
rose 1.2% and the
“US stocks rose after talks between Russia and Ukraine brought hope that a possible de-escalation is looming,” wrote Edward Moya, senior market analyst at Oanda.
Russian and Ukrainian officials held ceasefire talks to review the terms of a possible deal. Ukrainian officials have expressed optimism about a ceasefireeven though conversations ended without an announcement.
The news has also emerged that Russia would be significantly reduce its military activity near kyiv. That helped push the price of WTI crude oil down 1% to just over $104 a barrel, well below a multi-year high of $130 reached in early March. The fear, which is receding for now, is that further restrictions on Russian oil by Western nations would drastically reduce global supply.
Small-cap stocks rose, with the
index rises 2.7%. Small-cap companies often outperform large-caps when there is good economic news, as a stronger economy generally leads to higher earnings for smaller companies.
That may paint a rosy picture, but the bond market is sending worrying signals as the the yield curve continues to flatten. That means short-term interest rates are catching up to longer-term bond yields, a sign that tighter monetary policy could hurt economic demand and cause a recession.
The yield curve, in this case the difference in yield between the 10-year and 2-year Treasury bond, briefly inverted before ending Tuesday with the 10-year yield 0.03 percentage point above the 2-year yield. An investment would mean that the 2-year return would be greater than the 10-year return.
“The risk of an abrupt slowdown or recession has increased, along with the prospect of a more rapid sequence of Federal Reserve rate hikes and disruptions due to the war in Ukraine,” wrote Mark Haefele, chief investment officer at managing global wealth at UBS. .
The Fed is expected to raise interest rates many times in the next two years to combat high inflation.
But the stock market is taking it in its stride because “while curve inversion has historically been an important signal of downturn risk in the market, it doesn’t tell us much about when a downturn is likely to occur,” Lauren wrote. Goodwin, an economist and portfolio strategist in New York. Life Investments.
And if that recession doesn’t come for a few years, corporate profits will continue to grow. Economists and analysts still expect the S&P 500’s gross domestic product and earnings per share to grow each year for at least the next few years, according to data from FactSet.
increased by 0.9% and the
fell 0.3%, lower than other major indexes in Asia, as the Chinese financial hub faces new Covid-19 lockdown measures.
The price of
and other cryptocurrencies rose after a significant rally on monday. Bitcoin, the leading digital asset, was at around $47,700 on Tuesday afternoon.
Here are five stocks in motion on Tuesday:
American Depository Receipts
barclays (BCS) rose 3.6% after falling more than 10% on Monday. The British bank said it expected to post a loss of $593 million after sell more securities under its US shelf record of what it was registered to sell; the group has also halted its share buyback program until the second quarter.
fortnite (FTNT) shares rose 2.6% after Barclays upgraded them to Overweight from Equal Weight.
Etsy (ETSY) shares rose 3.2% even after being downgraded to Hold from Buy on Loop Capital.