Stocks surged Wednesday morning as investors celebrated a drop in crude oil prices.
The Dow gained more than 600 points, or 1.9%, shortly after the opening bell. It was a broad-based rally, with oil giant Chevron (CVX) the only Dow stock trading lower.
The S&P 500 and Nasdaq were up about 2% and 2.4% respectively. If the gains hold throughout the trading session, Wall Street will snap a four-day losing streak.
Investors have been nervous about the spike in energy prices after Russia’s invasion of Ukraine. The United States and Europe have responded with various economic sanctions against Russia, and America has even banned Russian oil imports.
Brent crude, the global oil benchmark, was down roughly 5% in early trading Wednesday to about $122 a barrel.
Stocks are still down sharply so far in March, adding to losses from earlier in the year. The Dow has fallen more than 8.5% so far in 2022, while the S&P 500 is down more than 10% and the Nasdaq is off 16%.
In addition to concerns about Russia and Ukraine, traders are trying to figure out what’s next for the markets and the broader economy now that the Federal Reserve is poised to raise interest rates to fight soaring inflation. Higher rates could put a dent in profits.