US stocks close higher after new sanctions on Russia

U.S. stocks closed sharply higher on Thursday, led by a 3% gain in the Nasdaq technology index, in a dramatic reversal from earlier in the session, after U.S. President Joe Biden announced tougher new sanctions against Russia after Moscow launched an invasion of Ukraine.

The S&P 500 index rose more than 1% and ended a four-day run of declines amid concerns over an escalating crisis. The Dow Jones index also ended in positive territory.

After consulting with counterparts in the Group of Seven, Biden announced measures to stop Russia from trading the world’s major currencies, as well as sanctions against banks and state-owned companies.

All three major indexes had seen strong sell-offs earlier in the day following news of Russia’s invasion of Ukraine, with the Nasdaq losing more than 3% at the open. They hit session highs after Biden’s comments and stayed in positive territory through the end of trading.

“The tough stance the US and Europe are taking is sending a strong message to financial markets that they will try to damage the Russian economy as much as they can,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. .

“From a perspective, this is positive,” he said, adding that selling in the market may not be over. “Going forward, we are still subject to likely higher oil prices, likely higher commodity prices.”

The information technology sector advanced 3.5% and gave the S&P 500 its biggest boost, in a reversal of recent moves.

The S&P 500 index closed up 1.50% at 4,288.70 points. The Dow Jones Industrial Average rose 0.28% to 33,223.83 points. The Nasdaq Composite technology index rose 3.34% to 13,473.59 points.