The stock market jumped on Friday, with the Dow surging over 800 points—its best day since late 2020—amid reports that Russia is open to negotiating with Ukraine, even as Russian troops close in on the capital city of Kyiv and Ukraine has not yet agreed to meet for talks.
Markets rebounded on Friday amid reports that Russia said it is willing to negotiate with Ukraine.
Chris McGrath/Getty Images
Stocks rebounded strongly on Friday: The Dow Jones Industrial Average was up 2.5%, over 800 points, while the S&P 500 jumped 2.2% and the tech-heavy Nasdaq Composite 1.7%.
Despite remaining on track for weekly losses, all three major indexes rose for a second day in a row, with markets getting a major boost from reports that Russian President Vladimir Putin may be open to talks with Ukrainian leadership.
A Kremlin official said Friday that Moscow is willing to send a delegation to Belarusian capital Minsk for negotiations with Ukraine, Forbes Ukraine reported, a day after Western leaders unveiled a new set of widespread sanctions against Russia.
The move comes after Ukrainian President Volodymyr Zelenskyy reportedly offered for his country to have a nonaligned status with NATO—a key demand of Putin’s in the weeks leading up to invasion that Western countries repeatedly rejected.
The latest developments, which boosted U.S. stocks higher as investors hope for a quick resolution to the conflict, come even as Russian troops continued to advance on Kyiv, with reports that the bombing of Ukraine’s capital city intensified on Friday morning.
Oil prices moderated somewhat on Friday, declining slightly after a recent surge driven by the Russia-Ukraine conflict briefly pushed prices above $100 per barrel, the highest level since 2014.
All 11 sectors of the S&P 500 moved higher on Friday, with financials, materials and consumer staples leading the benchmark index’s gains.
The market is staging a “very strong rally” with big outperformance in value and cyclical stocks, as “investors welcome headlines about possible Russia-Ukraine negotiations in Minsk (along with reports that Moscow’s assault on the country isn’t going nearly as well as Putin hoped),” according to Vital Knowledge founder Adam Crisafulli.
Though stocks are still on pace for a losing week, all three major indexes rebounded on Thursday, reversing steep declines even after Russia officially invaded Ukraine. While stocks opened sharply lower—with the Nasdaq briefly falling into a bear market (more than 20% below its record high last November), markets staged a stunning rebound as investors bought the dip.
“Russia invading Ukraine has added to an already tense year, with investors selling first and asking questions later,” says Ryan Detrick, chief market strategist for LPL Financial. “But it is important to know that past major geopolitical events were usually short-term market issues, especially if the economy was on solid footing.”
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