U.S. markets turned in a drastic turnaround as global markets dropped sharply Thursday in the wake of Russia's invasion of Ukraine. Photo by John Angelillo/UPI | License Photo
Feb. 24 (UPI) -- U.S. markets staged a dramatic turnaround Thursday as world financial markets were down sharply in the wake of Russia's invasion of Ukraine.
The Dow Jones Industrial Average closed the day up 92.07 points, or 0.28%, after falling more than 830 points to start the day, while the S&P 500 gained 1.5% after dropping 2.6% at the opening bell.
The Nasdaq Composite ended the day up 3.34%, completely erasing a 3.3% loss earlier in the day.
Despite Thursday's reversal, the S&P 500 remained in correction territory, more than 10% off its Jan. 3 record close, and the Dow was just outside of correction territory.
The Nasdaq Composite opened down more than 20% from its record high in November, placing it in bear market territory, but finished the day outside of that territory, about 16% off its all-time high.
The U.S. market comeback was driven by investors buying the dip on major tech stocks, as Netflix stock rose 6.14%, Microsoft gained 5.11%, Facebook parent Meta climbed 4.61%, Amazon grew 4.51% and Google parent Alphabet closed up 4%.
Defense stocks were on the rise as investors predicted increased military spending. Raytheon gained 2.2% and Lockheed Martin rose 1.75%.
Earlier in the day, Russia's stock market crashed by as much as 45%, while the ruble hit a record low against the dollar.
European and Asian stocks also fell Thursday. The FTSE 100 was down 3.3% in London, Germany's DAX 30 dropped 4.5% and France's CAC 40 fell 4.1%.
Japan's Nikkei 225 was off 1.8% while China's Shanghai Composite was 1.7% lower.
Investor reaction to the Russian invasion of Ukraine pushed stocks down while lifting gold and oil prices, according to the Wall Street Journal.
Brent oil prices exceeded $100 a barrel for the first time since 2014, but settled up about 1% to around $92 per barrel. West Texas Intermediate crude oil prices also rose about 1% at about $92 per barrel after hovering near $100 per barrel.
Natural gas futures soared 40%, while aluminum and nickel prices rose to their highest points in a decade -- Russia is a major aluminum and nickel producer.
Gold futures ended the day up 1.5% to $1,939.80 an ounce.
U.S. Treasury bonds also rose in price as yields as the benchmark 10-year note fell to 1.86% from 1.976%, according to the Wall Street Journal.
Russia's attack on Ukraine is already impacting American wallets.
Gas prices in the United States are expected to rise further. Prices already are up 20.7 cents on average from a month ago and 88.9 cents a gallon higher than a year ago, according to GasBuddy data.
"Russia is one of the leading oil producers globally, behind only the United States and Saudi Arabia. And if they choose to withhold their oil from the global market, such a move would eventually be reflected in higher gas prices for American drivers," AAA spokesman Andrew Gross said.
The economic cost for Americans could extend well beyond gas prices, and Wall Street analysts said possible impacts include worsening semiconductor shortages and more inflation driven in part by restrictions on wheat and metals.