The rebound in US equities accelerated near midday Friday as traders snapped up bargains created by the market selloff following Russia’s invasion of Ukraine.
In the runup to the conflict, share prices dropped sharply, but analysts said the declines went too far, creating buying opportunities.
“We’re having a nice rally here,” said Peter Cardillo of Spartan Capital Securities.
A key factor in the rebound is that Russian President Vladimir Putin “seems to be ready to talk with Ukraine.”
The Kremlin said it was open to negotiations if Ukraine lays down its arms, but the Russian leader later called for a coup to remove Kyiv’s leader.
Economists continue to warn the conflict could have severe effects on the global economy by causing energy and food prices to rise.
“It’s a good rally but I still think that until there’s definite clarity on what Russia is going to do in Ukraine, I would I remain optimistically cautious,” Cardillo said.
The benchmark Dow Jones Industrial Average was up 2.4 percent at 34,013.21 around 1745 GMT, while the broad-based S&P 500 had gained 2.1 percent to 4,378.87.
The tech-rich Nasdaq Composite Index was up 1.4 percent to 13,659.96.
Meanwhile, government data showed US spending on goods and services rebounded after a drop in December, with personal consumption expenditures jumping 2.1 percent, a bigger increase than economists had forecast.
The PCE price index rose 0.6 percent compared to December, and jumped 6.1 percent over the last 12 months — its biggest increase since 1982.
Rising inflation has sparked a sharp shift in Federal Reserve policy, which central bankers say will bring interest rate hikes starting in March.
Fed board member Christopher Waller in a speech late Thursday said he wanted to see a half-point increase in the benchmark lending rate next month, but the situation in Ukraine could change his thinking.
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