Wall Street Ends Sharply Higher For Second Day After Ukraine Shock

U.S. stocks ended up sharply for a second day on Friday, with the Dow registering its biggest daily percentage gain since November 2020 as the market rebounded from the sharp selloff leading up to Russia's invasion of Ukraine.

Oil prices fell below $100 a barrel, easing some concerns about higher energy costs.

Russian missiles pounded Kyiv and families cowered in shelters on Friday, a day after Russia unleashed a three-pronged invasion of Ukraine in the biggest attack on a European state since World War Two.

Investors also are assessing news that Russian President Vladimir Putin told his Chinese counterpart Xi Jinping in a call that Russia was willing to hold high-level talks with Ukraine, according to China's foreign ministry.

Some strategists say stock-selling may have been overdone. The S&P 500 confirmed earlier this week it was in a correction when it ended down more than 10% from its Jan. 3 record closing high.

"It sure feels a lot more like we've really exhausted sentiment in this correction," said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis, noting that economic fundamentals and corporate health remain favorable.

According to preliminary data, the S&P 500 gained 96.04 points, or 2.25%, to end at 4,384.74 points, while the Nasdaq Composite gained 223.28 points, or 1.66%, to 13,695.47. The Dow Jones Industrial Average rose 834.16 points, or 2.51%, to 34,058.55.

The West on Thursday unveiled new sanctions on Russia, while NATO Secretary-General Jens Stoltenberg said on Friday the alliance was deploying parts of its combat-ready response force and would continue to send weapons to Ukraine.

Some strategists noted that the sanctions announced Thursday targeted Russia's banks but left its energy sector largely untouched.

Shares of Johnson & Johnson climbed after a U.S. judge ruled that the drugmaker's subsidiary can remain in bankruptcy, preventing plaintiffs from pursuing 38,000 lawsuits against the company alleging its baby powder and other talc products cause cancer.