Ukrainian stocks rally pushes Wall Street to open higher – zimo News


The New York Stock Exchange opened higher on Tuesday, encouraged by the progress of the ceasefire in Ukraine.

At around 1:55pm GMT, the Dow was up 0.81%, the technically strong Nasdaq was up 1.07% and the broader S&P 500 was up 0.66%.

In sync with European stock markets, Wall Street reacted immediately before the opening bell to Ukrainian chief negotiator David Arakamia’s announcement that the conditions for a meeting between Ukrainian President Volodymyr Zelensky and Russia’s President were “adequate”. Vladimir Putin.

“The headlines (…) appear to have renewed some hope,” Schwab analysts said in a note.

Gregori Volokhine, president of Meeschaert Financial Services, commented: “This is a sign that looks a bit stronger than what we currently have.”

The dynamics that have rocked markets since Feb. 24 and the start of the Ukrainian invasion, benefiting some sectors and punishing others, have suddenly reversed.

Oil stocks were caught in a storm as the price of black gold rose, from Exxon Mobil (-3.12%) to Chevron (-2.86%), ConocoPhillips (-4.38%) or Marathon Oil (-3.22%).

Also, gas groups EQT (-3.55%) and Cheniere (-3.60%), which benefited from US President Joe Biden’s statement to increase US deliveries to Europe, also retreated.

In the viewfinder, Lockheed Martin (-2.80%), Raytheon (-1.34%) or Northrop Grumman (-2.36%) flew at half-mast, Defense and Armaments.

Gregori Volokhine concluded: “When we have news that is contrary to the current one, the excesses of the market are corrected.”

On the other hand, Norwegian Cruise Line (+2.63%), Carnival Cruise Line (+2.01%) and Royal Caribbean Cruises (+1.96%) took off, as did American Airlines or Delta Air Lines.

The VIX index, which measures market volatility, contracted sharply to its lowest level since mid-January.

In the bond market, interest rates also fell. The yield on the 10-year U.S. government bond rose from 2.53% to 2.39% in minutes, a very unusual move in this market.

Gregori Volokhine warned that although Ukraine has been cleaned up, “we must keep our feet on the ground”. “We hope this is good news, but we can’t be sure if it will support the market for more than a few hours. »

On the technical front, Apple continued its winning streak (1.18% to $177.67), heading for an eleventh straight session of gains.

Joining the stars was audience measurement firm Nielsen (+21.05% to $26.88), which has agreed to be acquired by a consortium of investment funds led by Evergreen Coast Capital Corporation. The deal values ​​the company at $16 billion, including debt.

The course is thus close to the price proposed by the consortium, which is $28 for the title.

Express delivery group FedEx reacted calmly (+4.24% to $239.80) to the drop announced by founder Frederick Smith, who will step down as general manager on June 1, leaving only executive chairman of the board as executive chairman. job.

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