Dow rebounds Wednesday as investors shake off intensifying Russia-Ukraine conflict, spiking oil

Stocks rose on Wednesday despite a continued surge in oil prices surged amid the intensifying conflict between Russia and Ukraine.

The Dow Jones Industrial Average gained 306 points, or 0.9%. The S&P 500 and Nasdaq Composite added about 0.9% and 0.7%, respectively.

The moves came as oil prices trekked upward, building on a massive move in the previous session. Futures for both U.S. crude and international benchmark Brent crude futures rose about 6% each. West Texas Intermediate most recently traded at $110.06 and Brent was at $112.02.

"Wall Street wants to take a break from the defensive playbook and hold off overloading on utilities, healthcare and consumer staples stocks.  With oil prices and Treasury yields rallying so much today, it is no surprise energy and financials are leading the open higher," Oanda senior market analyst Edward Moya said in a note to clients.

Corporate news helped push the market higher. Shares of Ford popped 4.6% after the automaker announced it would split its electric vehicle and legacy production businesses into two separate units. Salesforce rose 1.7% after the software giant beat estimates on the top and bottom lines for its fourth quarter.

The move in oil appeared to boost energy stocks, with Exxon and Chevron each rising about 2% in early trading.

However, the rising energy costs have also increased concerns about inflation and a potentially slowing economic recovery. The index moves on Wednesday morning trimmed losses from the previous session, which also saw a big spike in oil.

"Yesterday's price action, which saw Fed tightening expectations get pushed out, global yields plunge, the U.S. dollar & gold strengthen, and equity markets (ex-Energy) selloff sharply, strongly suggests that investors are increasingly pricing in a potential sharp slowdown," Wolfe Research's Chris Senyek said in a note to clients.

Government bond yields also rebounded Wednesday. The benchmark 10-year note most recently yielded close to 1.8% after falling below 1.7% the day before. The reversal appeared to help bank stocks, with Wells Fargo rising 2.4%.

Investors remained on edge as reports Wednesday indicated that Russian forces penetrated Kherson and have surrounded Mariupol, two key cities in the southern part of the country.

Markets also were digesting the State of the Union speech from President Joe Biden, who offered little in the way of new policy details while urging support for Ukraine and reiterating many of the goals for his domestic agenda.

"Some of the push for policies appeared to show his base he is still fighting for the issues they care about, but the reality remains that his political standing is perilous with an approval rating hovering around 40%," wrote Ed Mills, Washington policy analyst for Raymond James.

Earnings boosted several other stocks in extended trading. Nordstrom spiked by more than 30% on strong earnings while SoFi surged around 10%.

On the downside, First Solar shares tumbled more than 15% after the company misses estimates on revenue and issued disappointing guidance. Citi shed 3.5% after releasing updated financial goals.

Investors are also looking toward a key employment report on Friday. Private companies in the U.S. added 475,000 jobs in February, ADP said Wednesday. Economists polled by Dow Jones were expecting 400,000. The firm also revised its January numbers upward.

In trading Tuesday, the Dow fell 597 points, or 1.76%. The S&P 500 lost 1.55% and the Nasdaq Composite slid 1.59%.

Earnings season continues with several tech companies set to report on Wednesday. Okta, Pure Storage and C3 AI will report after the market closes. ChargePoint is also scheduled to report after the bell.