The S&P 500 gained 2.57% and the Nasdaq Composite rose 3.59%, their largest single-day gains since 2020, as oil prices came off of highs brought on by Russia's invasion of Ukraine. File Photo by John Angelillo/UPI | License Photo
March 9 (UPI) -- U.S. markets bounced back Wednesday following four consecutive losing sessions as oil and other rising commodity prices brought on by the war in Ukraine receded.
The Dow Jones Industrial Average climbed 653.61 points, or 2%, while the S&P 500 posted an increase of 2.57% for its best day since June 2020 and the Nasdaq Composite jumped 3.59% for its largest single-day gain since November 2020.
Wednesday's increases pushed the Dow out of correction territory and the Nasdaq out of bear market territory.
Oil prices, which have been surging as nations have taken action against Russia for its invasion of Ukraine and the subsequent war, dropped sharply Wednesday as the U.S. benchmark West Texas Intermediate crude fell more than 12% to $108.7 per barrel, its worst day since Nov. 26.
The international benchmark, Brent crude oil, dropped 13% to $111.1 for its largest single-day decrease since April 2020.
Energy stocks, which had been rising with oil prices also fell Wednesday with ExxonMobil dropping 5.68% and Chevron declining 2.5%.
Consumer stocks, which had fallen earlier in the week with U.S. gas prices exceeding $4 per gallon rebounded Wednesday as Nike and Starbucks both rose more than 4%.
"You can't have the rise at the fuel pumps not hit the economic pockets of everyday Americans, because it's going to make everything go up in costs," Victoria Greene, G-Squared Private Wealth founding partner, told Yahoo Finance Live. "Anything that rides on four wheels or six wheels, including all your shipping -- it's going to make all your costs rise. We're already in an inflationary environment ... it really is going to be something that we have to watch."
The benchmark 10-year note yield gained five basis points to 1.93% sending bank stocks higher with Bank of America stock rising 6.38%, Wells Fargo gaining 5.83% and Goldman Sachs increasing 3.76%.
Travel stocks continued gains Wednesday as Carnival cruise line stock rose 8.68% and United Airlines gained 8.27%.