SPY Overcomes Geopolitical Jitters As Tech Stocks Lead Recovery: Retail Stays Wary
By Stocktwits Inc | First Published Nov 19, 2024, 11:25 PM ISTGeopolitical tensions aggravated after Russian President Vladimir Putin lowered the threshold of using nuclear weapons.
U.S. stocks rebounded from early losses on Tuesday as traders overlooked new geopolitical concerns and focused on gains from a Wall Street favorite ahead of its much-anticipated earnings report, boosting tech stocks.
Russian President Vladimir Putin on Tuesday lowered the threshold for using nuclear arsenal as he signed a decree marking the implementation of a revised Russian nuclear doctrine, New York Times reported.
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Putin’s move came merely two days after the outgoing U.S. President Joe Biden reportedly authorized the use of U.S.-supplied long-range missiles by Ukraine inside Russia.
The Times report cited Russian President’s spokesperson Dmitri Peskov’s statement that the country "reserves the right" to use nuclear weapons to even conventional-weapon attacks that threaten “sovereignty and territorial integrity.”
In an X post, Russia’s Ministry of Foreign Affairs said,. "At 3:25 am, Ukrainian forces fired 6 U.S.-produced ATACMS missiles at Russia’s Bryansk region."
After the Asian market ended mostly higher, sentiment soured in the rest of the global markets amid the Russian nuclear war threat but safe-haven assets rallied.
While the markets in Europe, the epicenter of the Russo-Ukrainian tensions, fell sharply, their U.S. counterpart has made good early losses and was trading slightly higher at last check.
As of 12:30 pm ET, the SPDR S&P 500 ETF Trust ($SPY) was up 0.13% to $588.94.
Communication services, energy and consumer discretionary stocks were among the best performers of the session.
Among individual stocks, Super Micro Computer, Inc. ($SMCI) rallied over 35%, and United Airlines Holdings, Inc. ($UAL), Walmart, Inc. ($WMT), Henry Schein, Inc. ($HSIC) and GE Vernova, Inc. ($GEV) were all up over 3%.
Nvidia Corp. ($NVDA) climbed about 2.5% ahead of the company’s earnings due after the close on Wednesday.
SPY was among the active tickers on Stocktwits, although retail harbored mixed sentiment on the exchange-traded fund that tracks the broader S&P 500 Index.
A Stocktwits user said the ETF is headed toward $600 before the end of the year.
Another attributed the broader market recovery to optimism ahead of Nvidia’s earnings.
But a bearish user said SPY will likely remain stuck in its recent trading range.
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