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Stocks stage comeback as West hits Russia with new sanctions amid Ukraine invasion

Click to play video: 'Global News Morning Mark and Business Report – Feb. 24, 2022' Global News Morning Mark and Business Report – Feb. 24, 2022
European Commission President Ursula von der Leyen said Thursday that the European Union would introduce “massive and targeted” sanctions against Russia after President Vladimir Putin ordered a wide-ranging military attack on Ukraine. She said the sanctions would have a “harsh impact” on Russia’s economy – Feb 24, 2022

The Nasdaq and S&P 500 ended sharply higher on Thursday in a dramatic reversal from the start of the session as U.S. President Joe Biden unveiled harsh new sanctions against Russia after Moscow began an all-out invasion of Ukraine.

The Dow also ended in positive territory.

After consulting counterparts from the Group of Seven nations, Biden announced measures to impede Russia’s ability to do business in the world’s major currencies, along with sanctions against banks and state-owned enterprises.

Indexes, which sold off at the start of the day on news of Russia’s invasion of Ukraine, hit session highs in the wake of Biden’s comments. Nasdaq was down more than three per cent at the open.

Click to play video: 'Russia-Ukraine conflict: Biden announces new sanctions against Russian banks, deployment of troops' Russia-Ukraine conflict: Biden announces new sanctions against Russian banks, deployment of troops
Russia-Ukraine conflict: Biden announces new sanctions against Russian banks, deployment of troops – Feb 24, 2022

 

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“The tough stand the U.S. and Europe is taking is sending a loud message to the financial markets that they’re going to try to cripple as much as they can the Russian economy,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“From one perspective that’s positive,” he said, adding that the selling in the market may not be over.

“Going forward, we’re still subject to probably higher oil prices, probably higher commodity prices.”

Read more: Canadian gas prices set to soar this weekend amid Russia’s invasion of Ukraine

According to preliminary data, the S&P 500 gained 62.62 points, or 1.50 per cent, to end at 4,288.12 points, while the Nasdaq Composite gained 435.97 points, or 3.27 per cent, to 13,464.29. The Dow Jones Industrial Average rose 86.95 points, or 0.26 per cent, to 33,218.71.

The information technology sector gave the S&P 500 its biggest boost in a reversal of Wednesday’s action.

Ukrainian forces battled Russian invaders on three sides on Thursday after Moscow mounted an assault by land, sea and air in the biggest attack on a European state since World War Two.

(Reporting by Caroline Valetkevitch in New York Additional reporting by Susan Mathew, Devik Jain and Bansari Mayur Kamdar in Bengaluru Editing by Anil D’Silva and Matthew Lewis)

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Click to play video: 'Russia-Ukraine conflict: Canada imposes severe new sanctions on Russia' Russia-Ukraine conflict: Canada imposes severe new sanctions on Russia
Russia-Ukraine conflict: Canada imposes severe new sanctions on Russia – Feb 24, 2022

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