Dow industrials trade 600 points higher on latest in Ukraine-Russia crisis, pull back in oil’s price

The S&P 500 had dropped nearly 5% over the last four sessions.

What’s driving markets

U.S. markets were in rally mode, joining the rest of global stock bourses, as investors digested the latest developments in Eastern Europe.

Wednesday’s climb comes ahead of a Thursday meeting between Russia’s and Ukraine’s foreign ministers in Turkey, as Reuters reported, with analysts looking at an apparent thawing of positions. Ukraine President Volodymyr Zelensky said he is no longer pressing for NATO membership, one of Russia’s stated reasons for its invasion. Reports also have indicated that Zelensky is ready for a diplomatic solution to the hostilities sparked by Moscow’s unprovoked invasion of Kyiv.

Meanwhile, some humanitarian corridors were opened to allow citizens to flee the war and some energy and agricultural commodity prices eased back from recent highs, while the number of companies withdrawing from Russia grew.

Elsewhere, the German DAX
DX:DAX
and French CAC 40
FR:PX1
each surged by at least 6%.

Oil futures
CL
slipped sharply a day after President Joe Biden announced a ban on Russian oil and gas imports, as major brands including McDonald’s
MCD
and Coca-Cola
KO
said they would exit Russia.

The recent surge in commodity prices resulting from the war in Ukraine is seen leading to even higher inflation in Europe and the U.S., in particular, raising the possibility of slower economic growth or even recession. Some banks have raised their inflation forecasts, lowered growth outlooks and considered the possibility of stagflation.

In economic reports, U.S. job openings fell slightly in January to 11.3 million after setting a record at the end of 2021, but millions of workers continue to quit each month in what has become known as the “Great Resignation.”

The number of open positions slipped from a revised 11.5 million December, the Labor Department said Wednesday.

The jobs data comes ahead of Thursday’s February consumer-price index and a European Central Bank policy update, which could prove pivotal for investors.

Which companies are in focus?

• Papa John’s International Inc. PZZA said Wednesday it has suspended all of its corporate operations in Russia, as the pizza restaurant chain condemns Russia’s invasion of Ukraine. Its stock was up 3.3%.

• Shares of General Electric Co. GE rallied 5.4% to extend their bounce off at 14-month low, after the industrial conglomerate disclosed a new $3 billion stock repurchase program.

• Stitch Fix shares
  SFIX
  were falling over 11% after the online apparel retailer chopped its financial forecasts for the full year, saying revenue may decline.

• Shares of Bumble Inc.
  BMBL
  surged 44.5% after the online dating company posted upbeat user-growth figures Tuesday evening. Bumble said it added 1.64 million paying users in the fourth quarter, up from 1.27 million a year prior, exceeding the FactSet consensus estimates.

How are other assets faring?

• The yield on the 10-year Treasury note jumped 4.5 basis points to 1.91%, after the benchmark climbed to highs not reached since Feb. 25 based on levels at 3 p.m. Eastern Time. Yields and debt prices move opposite each other.

• The ICE U.S. Dollar Index DXY, a measure of the currency against a basket of six major rivals, was down around 0.9%, on pace for its sharpest daily fall in two years.

• Gold futures for April delivery GCJ22 declined over 2% to trade below $2,000 an ounce.

• Bitcoin BTCUSD advanced 10% at $42,320 after President Joe Biden signed an executive order to explore regulation and use cases for crypto, which was viewed as constructive for the sector.

• In European equities, the Stoxx Europe 600
  XX:SXXP
  rose 3.9%, while London’s FTSE 100 UKX climbed 2.3%.

• In Asia, the Shanghai Composite SHCOMP dropped 1.1%, while the Hang Seng Index HSI slipped 0.7% and Japan’s Nikkei 225 NIK retreated 0.3%.