Stocks End Losing Streak as S&P 500 Rallies 2.6%

Brent oil futures fell $16.84 a barrel, or 13%, to $111.14, the worst one-day percentage loss since April 2020. The United States has imposed a restriction on Russian oil and gas supplies, while Russian President Vladimir Putin has signed an order prohibiting the export of various goods and raw materials.

"Whenever there is a reprieve in commodities prices, we are likely to see a good reaction in shares," noted Kristina Hooper, Invesco's chief global market strategist.

Wednesday's surge in equities markets prompted investors to retreat from safe-haven assets. The Wall Street Journal Dollar Index, which measures the currency's value against a basket of foreign currencies, fell 0.74 points, or 0.8%, to 90.83. This turn follows a winning run in which the dollar reached its highest level in over two years. For the third straight trading day, the yield on 10-year Treasury notes increased to 1.946%, the highest three-day advance since June 2020. The yield curve and the price of bonds move in opposing directions.

Gold prices, another asset that is seen as relatively protected by investors, fell $54.20 a troy ounce, or 2.7%, to $1,985.90, the worst one-day loss in both dollar and percentage terms since June 2021. Trades in the nickel market have been halted for another day, after wild swings Tuesday that saw the metal rising to temporarily breach the $100,000-a-ton level.

Travel and textile companies surged in the New York trade. Carnival Cruise Lines increased by $1.39, or 8.8%, to $17.27, while Royal Caribbean increased by $3.52, or 5.5%, to $68.06. American Airlines Group increased by $0.79, or 5.9%, to $14.30, while United Airlines Holdings increased by $2.665, or 8.3%, to $34.90. Tapestry Inc. increased by $3.45, or 11%, to $35.88, its highest percentage gain since April 2020.

Similarly, Amazon.com's stock jumped 8.2% in after-hours trading after the e-commerce giant announced a 20-for-1 stock split and a $10 billion share repurchase program.

Goldman Sachs increased its forecast for S&P 500 stock buybacks to $1 trillion in 2022 on Monday. According to Jessica Bemer, portfolio manager at Easterly Investment Partners, investors are comforted by firms' healthy financial sheets.

"We are aware that the market is practically working on the sand. We don't know if today is the low or tomorrow will be low, but we do realize that these businesses will continue to operate and survive," she added.

Energy stocks, which have outpaced the market this year, have fallen. Halliburton slid $1.92, or 5.2%, to $34.84, while Marathon Oil fell $0.69, or 2.9%, to $23.40.

Bitcoin staged a rebound in the crypto market after a recent drop, increasing nearly 8.7% from its Tuesday closing price at roughly $41,909.59. President Biden issued an executive order on Wednesday directing federal agencies to examine the formation of a US digital currency.

Overseas, the Stoxx Europe 600 index increased by 4.7%. Other European markets climbed as well, with Germany's blue-chip DAX finishing 7.9% higher. This is its greatest day since March 2020, when it broke out of the bear market zone. Russia's equity market stayed closed, while currency trade continued. In tumultuous trading on the foreign exchange market, the ruble dropped marginally lower to roughly 128 rubles to the dollar. Russia's ruble has been volatile since the authorities adopted steps to halt the selloff, and Western banks have shied away from Russian holdings.

Asia's markets mostly declined in line with Wall Street's Tuesday session. The Nikkei 225 index in Japan declined by 0.3%, while Hong Kong's Hang Seng Index plummeted by 0.7%. The Shanghai Composite Index fell 1.1%.