On the 15th (local time), major indices on the New York Stock Exchange ended higher all at once as international oil prices fell below $100 a barrel. /Picture=Reuters As international oil prices fell below $100 a barrel, major U.S. stock indexes ended higher all at once. At the New York Stock Exchange (NYSE) on the 15th (local time), the Dow Jones Industrial Average closed at 33,544.34, up 599.10 points (1.8%) from the previous trading day. The Standard & Poor’s 500 index, which focuses on large-cap stocks, rose 89.34 points, or 2.1%, to 4262.45, and the Nasdaq index, which focuses on technology stocks, rose 367.40 points, or 2.9%, to 12,948.62. Technology stocks led the uptrend on the day. Microsoft and Netflix each rose 3.8%. Semiconductor stocks such as Nvidia (7.7%) and Marvell (9.2%) also rebounded. Disney and McDonald’s rose 4% and 2.8%, respectively. Aviation stocks also rose sharply. United Airlines rose 9.19%, while Delta and American Airlines rose 8.69% and 9.26%, respectively. Boeing rose 2.48%. Energy stocks fell as oil prices fell. Chevron and ExxonMobil fell 5.06% and 5.69%, respectively. On the same day, the international oil price fell below $100 a barrel, which is believed to have had a positive effect on the stock market as investor sentiment recovered. It is analyzed that expectations for a peace deal between Russia and Ukraine and the prospect of a decline in China’s oil demand have put downward pressure on international oil prices. As China imposed lockdown orders in major cities such as Shenzhen, the Chinese version of Silicon Valley to contain the novel coronavirus infection (COVID-19), concerns have spread that oil demand could decrease. Russia and Ukraine resumed the fourth round of peace negotiations over the phone the day before after three face-to-face negotiations. Mikhail Podolyak, an adviser to the Office of the President, who leads the Ukrainian delegation, said the negotiations were very difficult and persistent, but there was room for compromise. The US producer price index (PPI) for February, released on the same day, rose 0.8% from the previous month, lower than the market consensus of 0.9%, lowering the fear of inflation. Excluding volatile foodstuffs and energy, the core PPI rose 0.2% from the previous month, well below market expectations (0.6%). The U.S. central bank, the Federal Reserve, is expected to raise rates for the first time in three years after the Federal Open Market Committee (FOMC) regular meeting on March 16. Considering the uncertainty caused by the geopolitical crisis, it is predicted that the rate will be raised only by 0.25 percentage points, which is lower than the 0.5 percentage point previously discussed. Seo Sang-young, a researcher at Mirae Asset Securities, said that the U.S. stock market started rising on the same day as Ukrainian President Volodymyr Zelensky mentioned his inability to join NATO (one of the key requirements that Russia insisted on in the armistice negotiations) on the day of the U.S. stock market’s hopes for a resolution to the situation. analyzed that The re-opening related to news that the recovery of travel demand was faster than expected, saying that the lower-than-expected inflation index, a sharp drop in international oil prices, and the remarks of European Central Bank (ECB) President Lagarde Lagarde led the rise in technology stocks. It is said to have risen in tandem. Researcher Suh added that the rise was limited after Putin mentioned that Ukraine’s talks were not sincere, but the market closed higher on hopes of easing regulatory concerns after the resignation of Fed Vice Chairman Raskin.
