Stocks swing back up, oil prices hit new high
Wall Street took another sharp swing Wednesday, this time back to rally mode, as stocks and Treasury yields rose even as U.S. crude oil prices climbed to the highest level in more than a decade.
The S&P 500 rose 1.9%, recouping its losses from earlier in the week, after Federal Reserve Chair Jerome Powell said he supports a more modest rise in interest rates this month than some investors had feared. He also said he still expects inflation, which is at its highest level in 40 years, to moderate through the year.
"Although we've had some Fed governors lately saying 'Oh my God, this is such a huge crisis,' the conventional wisdom is slow and steady wins the race right now," said J.J. Kinahan, chief strategist with TD Ameritrade.
The comments helped drive the market higher, adding to modest gains from earlier in the morning.
The yield on the 10-year Treasury leaped to 1.89% from 1.72% late Tuesday, while the two-year Treasury surged to 1.53% from 1.31%. The price of U.S. oil jumped another 7% to $110.60 per barrel, the highest level in just over a decade. Brent crude, the international standard, climbed 7.6% to $112.93 per barrel.
In the stock market, all the uncertainty about oil prices and inflation has led to big swings not only by the day but also by the hour. The S&P 500 swung between gains of 0.4% and 2.2% Wednesday. It closed 80.28 points higher to 4,386.54.
The Dow Jones Industrial Average rose 596.40 points, or 1.8%, to 33,891.35, while the Nasdaq composite gained 219.56 points, or 1.6%, to 13,752.02.
In this photo provided by the New York Stock Exchange, Joseph Behette, right, works with a fellow trader on the floor, Wednesday, March 2, 2022. Wall Street took another sharp swing Wednesday, this time back to rally mode, as stocks and Treasury yields rose even as oil prices continued to climb. (Allie Joseph/New York Stock Exchange via AP)
Amazon shuts shops and physical bookstores
Amazon is closing all of its brick-and-mortar bookstores, as well as its four-star shops and pop up locations. The closures come as the online behemoth reworks its physical footprint.
The move affects 66 stores in the U.S. and two in the United Kingdom. The Seattle-based company said Wednesday that it will now be able to concentrate its efforts on Amazon Fresh, Whole Foods Market, its convenience concept called Amazon Go and its upcoming Amazon Style stores.
Amazon Style is set to open later this year selling fashion and accessories. Amazon opened its first brick-and-mortar bookstore in 2015, two decades after it began selling books online and helped drive a number of shops out of business.
Bitcoin viewed as safe amid global tension
Bitcoin prices have surged as investors again appear to view the volatile cryptocurrency as a safe haven for their money and Russians and Ukrainians seek alternatives to their country's financial institutions.
After initially falling to around $34,000 following Russia's advance into Ukraine last week, bitcoin pushed about 10% higher on Monday and is now up more than 25% in the past week, to $43,900 Wednesday afternoon. Russians are exchanging their rapidly declining rubles for bitcoin to try and mitigate the impact of recent economic sanctions.
Ukrainians, with the government limiting their ability to conduct electronic fund transactions, are also turning to cryptocurrencies.
GOP wants to end Russian oil imports
Republican elected officials across the U.S. are criticizing President Joe Biden over his energy policies and want to ramp up domestic production as a way to help wean the nation and its allies off oil from Russia.
Governors, senators and state attorneys general from oil- and gas-producing states such as Oklahoma and Louisiana urged his administration to do more to boost production, which actually increased during Biden's first year in office. The sanctions imposed by the U.S. and its allies on Russia for its war with Ukraine so far do not include oil and gas exports from the country.
- Compiled by Dave Flessner