Stocks rose midday on Wall Street on Tuesday as talks on ending the war in Ukraine showed signs of progress.
The S&P 500 was up 0.8% at 11:38 a.m. ET. The Dow Jones Industrial Average rose 260 points, or 0.8%, to 35,220 and the Nasdaq rose 1.2%.
The gains were led by technology and communications companies. Apple rose 1.2% and Netflix 3.6%. Retailers and other businesses that rely on direct consumer spending also made solid gains.
Shares of small companies outperformed the broader market, a sign that investors had confidence in the economy. The Russell 2000 rose 2%.
The first face-to-face talks in two weeks between Russia and Ukraine began in Turkey on Tuesday. Turkey’s foreign minister said Russian and Ukrainian negotiators reached “a consensus and common understanding” on some issues. The Russian military said it would “fundamentally” scale back operations near the Ukrainian capital and a northern town as talks highlighted a possible deal to end a brutal and brutal war.
Russia’s invasion of Ukraine has destabilized markets and added to lingering concerns about continued rising inflation and global economic growth. Investors were already busy figuring out the potential duration and impact of higher inflation on businesses and consumers when the dispute erupted a month ago.
Energy prices have been extremely volatile as the conflict continues, but have fallen in recent days. Price pressure is also easing as Chinese authorities lock down Shanghai due to surging COVID-19 cases, which could dampen global oil demand.
US crude oil prices fell 2.8% and Brent, the international standard, fell 2.5%. Prices are still up more than 30% globally, but they were up more than 50% last week.
Falling oil prices weighed on energy companies, which posted some of the biggest losses on Tuesday. Hess slipped 1.5%.
European markets were up and Asian markets closed mixed overnight.
The yield on the 10-year Treasury note fell to 2.43% from 2.47% on Tuesday evening. Bond yields had risen as Wall Street braced for higher interest rates after years of ultra-low interest rate policies by central banks around the world. The rate hikes are part of a strategy to mitigate the effects of rising inflation.
The Federal Reserve has already announced a 0.25% hike in its main benchmark interest rate and is ready to continue raising rates.
Wall Street is also looking at the latest economic updates this week. US consumer confidence rebounded in March, according to a report by economic research group The Conference Board.
The Commerce Department will release its February personal income and spending report on Thursday and the Labor Department will release its March jobs report on Friday.
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