NYSE Dow Jones finished today at:

[bigdog]

https://apnews.com/article/russia-u...sia-shanghai-1838f9b22e91327c2c843f6ca99cadb0

Stocks close lower as Wall Street watches Ukraine tensions

By DAMIAN J. TROISE and ALEX VEIGA

Stocks on Wall Street shed early gains and closed broadly lower Monday as the U.S. moved to close its embassy in Ukraine amid heightened tensions over the thousands of Russian troops that have been amassing on the border.

The S&P 500 fell 0.4% after having been down as much as 1.2% shortly after the U.S. said it is closing its embassy in Ukraine and moving all remaining staffers there to a city near the Polish border. The move comes as diplomatic efforts continued Monday in a bid to head off what U.S. officials have warned could be an imminent Russian attack on Ukraine.

Bond yields rose broadly, as did energy futures and the price of gold.

The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite ended essentially flat after having been up 1% in the early going. The three major stock indexes were coming off a weekly loss.

The market slide adds to losses from a late-afternoon sell-off on Friday after the White House told Americans to leave Ukraine within 48 hours over concerns that Russia could invade that country soon. Other governments including Russia pulled diplomats and their citizens out of the country.

Wall Street is also trying to gauge how stocks and the broader economy will be affected from another source of uncertainty: How far and how quickly the Federal Reserve will move to raise interest rates to quash surging inflation.

“The market is really paying attention to geopolitical stuff right now, whether it’s stuff out of Ukraine or in D.C. with respect to what the Fed is going to do,” said Willie Delwiche, investment strategist at All Star Charts. “The bigger story is inflation and rates. The Fed is catching up to inflation, the bond market is now taking the Fed seriously and the question is ’what do U.S. stocks do in that environment?”

The S&P 500 fell 16.97 points to 4,401.67. Nearly 80% of the stocks in the benchmark index fell. Financial, health care and energy companies were among the biggest weights on the market. Citigroup fell 1%, Moderna slid 11.7% and Exxon Mobil dropped 1.5%.

The Dow fell 171.89 points to 34,566.17. The blue-chip index had been down 433 points by midafternoon. The Nasdaq slipped 0.24 points to 13,790.92.

Smaller company stocks, which had been on pace for gains, also fell. The Russell 2000 slid 9.36 points, or 0.5%, to 2,020.79.

A potential escalation of the conflict between Russia and Ukraine also weighed heavily on European markets, which fell sharply.

Nations are still searching for a diplomatic solution to the situation and Russia’s top diplomat advised Russian President Vladimir Putin to continue a dialogue with the U.S. and its allies.

The price of U.S. crude oil climbed 2.5%, while natural gas prices jumped 6.4%. Russia is a major energy producer. Any military action that disrupts supplies could send shockwaves through energy markets and global industry.

The price of gold, traditionally a safe haven during geopolitical uncertainty, rose 1.5%.

Bond yields also rose. The yield on the 10-year Treasury rose to 1.99% from 1.94% late Friday.

The crisis in Ukraine is yet another concern for investors as they try to figure out how rising inflation and looming interest rate hikes will impact investments and the economy. Inflation stands at a four-decade high and the Federal Reserve is planning to raise interest rates to help cool inflation.

The central bank is expected to start raising its benchmark interest rate in March and Wall Street expects as many as seven rate hikes this year.

While Fed policymakers agree the central bank should begin raising interest rates next month, they differ on how quickly to do so. On Monday, James Bullard, president of the Federal Reserve Bank of St. Louis, repeated his call for the Fed to take the aggressive step of raising its benchmark short-term rate by a full percentage point by July 1. Esther George, president of the Kansas City Fed, expressed support for a more “gradual” approach. And Mary Daly of the San Francisco Fed declined to commit herself to more than a modest rate hike next month.

Their comments follow last week’s report that inflation jumped 7.5% in January from a year ago, the fastest increase in four decades. Prices also rose 0.6% from December to January, the same as the previous month, suggesting that price gains still aren’t slowing, as many economists and Fed officials have hoped.

The Fed typically responds to high inflation by making borrowing more expensive, which slows spending and the pace of price increases.

“Last week’s inflation report kind of woke Fed officials up a little and really brought to mind that they’re behind the curve here, and by acting aggressively earlier they can maybe do less overall in terms tightening,” Delwiche said.

Investors also have their eye on the latest round of corporate earnings, in part to get a better understanding of how companies are dealing with high inflation. Some of the more notable companies reporting earnings this week include Airbnb on Tuesday, DoorDash on Wednesday and Walmart on Thursday.

Investors will also get more updates on inflation and how that might be impacting spending. The Labor Department will release its January report for prices at the wholesale level on Tuesday and the Commerce Department will release its January retail sales report on Wednesday.

ASX 200 futures pointing lower​

The Australian share market is expected to open the day sharply lower this morning following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 105 points or 1.5% lower.

Stocks on Wall Street shed early gains and closed broadly lower Monday as the U.S. moved to close its embassy in Ukraine amid heightened tensions over the thousands of Russian troops that have been amassing on the border.

The S&P 500 fell 0.4% after having been down as much as 1.2% shortly after the U.S. said it is closing its embassy in Ukraine and moving all remaining staffers there to a city near the Polish border. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite ended essentially flat after having been up 1% in the early going. The three major stock indexes were coming off a weekly loss.

 

[bigdog]

https://apnews.com/article/russia-u...ness-economy-33d953209c8df3abb9b1968291f16673

Stocks gain ground, oil prices fall as Ukraine tensions ease

By DAMIAN J. TROISE and ALEX VEIGA

Technology companies led a rebound for stocks on Wall Street Tuesday as investors welcomed signs that tensions might ease over the Russian military buildup on Ukraine’s border.

The S&P 500 rose 1.6%. The gain snapped a three-day losing streak and nearly made up for all of its losses last week. The Dow Jones Industrial Average rose 1.2% and the tech-heavy Nasdaq composite climbed 2.5%.

Bond yields were mixed. U.S. crude oil futures fell, as did gold prices.

The rally came as Russia announced that some units participating in military exercises around Ukraine would begin returning to their bases. Later in the day, Russian President Vladimir Putin said Moscow is ready for talks with the United States and NATO on military transparency and other security issues. Still, President Joe Biden said Tuesday that the U.S. had not yet verified Russia’s claim of a troop drawdown.

“The anxiety retreated,” said Sam Stovall, chief investment strategist at CFRA. “It looks as if there’s still hope for a diplomatic solution.”

The S&P 500 rose 69.40 points to 4,471.07. Roughly 80% of stocks within the benchmark index notched gains. In addition to technology stocks, banks and companies that rely on consumer spending also helped lift the market.

The Dow Jones Industrial Average rose 422.67 points to 34,988.84 and the Nasdaq rose 348.84 points to 14,139.76.

Smaller company stocks outpaced the broader market. The Russell 2000 rose 55.67 points, or 2.8%, to 2,076.46.

Bond yields continued rising. The yield on the 10-year Treasury rose to 2.05% from 1.99% late Monday. The gains helped lift banks, which rely on higher bond yields to charge more lucrative interest rates on loans. JPMorgan Chase rose 1.5%.

Treasury yields have been gaining ground throughout 2022 as investors prepare for the Federal Reserve to start raising interest rates to fight inflation. The central bank is expected to start raising rates in March and traders see a 61% chance for a first hike of half a percentage point, double the traditional move.

U.S. benchmark crude oil prices slumped 3.6%. Oil prices have been volatile amid tensions over Russia potentially invading neighboring Ukraine. Russia is a major energy producer and military action that disrupts supplies could jolt markets and global industries.

European markets, which have been sensitive to tensions between Russia and Ukraine, recovered some of their losses Tuesday after Russia said it was withdrawing some troops, however analysts noted that the rebound belied some skepticism.

“While this is an encouraging development, talk tends to be cheap and so far, there has been little evidence of that happening on the ground, which perhaps helps explain why today’s rebound has been cautious, relative to recent losses,” said Michael Hewson, chief market analyst at CMC Markets UK.

The concerns on Wall Street over the potential conflict were piled on to a long list of threats for the broader financial markets and global economy that include persistently rising inflation’s impact on businesses and consumers. A report from the Labor Department on Tuesday showed that wholesale inflation surged again in January, rising 9.7% from a year earlier.

“Today is clearly a rally on less geopolitical tensions and really ignoring the inflation picture,” said John Lynch, chief investment officer for Comerica Wealth Management.

Inflationary pressure is still gathering momentum, Lynch said, and that makes a half-percentage point hike from the Fed in March almost necessary to reinforce that the central bank is serious about fighting inflation.

Rising costs have been crimping operations for a wide range of businesses and prompting many to raise prices on finished goods from clothing to food. That has raised concerns that consumers could eventually pull back on spending, therefore hurting economic growth. Investors will get an update on retail sales on Wednesday when the Commerce Department releases its January report.

Investors also have their eye on the latest round of corporate earnings, including DoorDash on Wednesday and Walmart on Thursday.


ASX 200 expected to rebound
The Australian share market looks set to rebound on Wednesday following a very positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.8% higher this morning.

Technology companies led a rebound for stocks on Wall Street Tuesday as investors welcomed signs that tensions might ease over the Russian military buildup on Ukraine’s border.

The S&P 500 rose 1.6%. The gain snapped a three-day losing streak and nearly made up for all of its losses last week. The Dow Jones Industrial Average rose 1.2% and the tech-heavy Nasdaq composite climbed 2.5%.

 

[bigdog]

https://apnews.com/article/russia-u...cial-markets-fad4066e53ed45305a3c603236b0eeb2

Stocks end mixed as traders parse next rate move by the Fed

By DAMIAN J. TROISE and ALEX VEIGA

Stocks shook off an early slump and ended mixed on Wall Street Wednesday after minutes from the Federal Reserve’s latest policy meeting showed policymakers still leaning toward moving decisively to fight inflation.

Trading was choppy following the midafternoon release of the Fed minutes. The S&P 500 wound up 0.1% higher after having been down 0.9% in the early going. The Dow Jones Industrial Average slipped 0.2% and the Nasdaq composite fell 0.1%.

Treasury yields bounced around a bit as traders tried to parse the latest update from the Fed. The 10-year Treasury yield ended up at 2.03%, just below where it was late Tuesday.

Wall Street has been looking for clues about how much and how quickly the central bank will begin raising interest rates. Traders see a 44% chance for a first hike in March of half a percentage point, double the traditional move.

In their discussion of the outlook for monetary policy, most Fed policymakers suggested that a faster pace of increases in the central bank’s benchmark short-term interest rate than what the Fed followed after its last rate hikes in 2015 “would likely be warranted, should the economy evolve generally in line with the Committee’s expectation.”

Policymakers also noted during the meeting that it would be appropriate for the Fed to make “a significant reduction” in the size of its balance sheet.

“In markets, timing is everything, and the delayed reaction from the Fed has investors convinced that aggressive policy tightening is on the horizon,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

The S&P 500 rose 3.94 points to 4,475.01. The benchmark index was coming off a broad rally on Tuesday that snapped a three-day losing streak. The Dow fell 54.57 points to 34,934.27, while the Nasdaq lost 15.66 points to 14,124.09.

Small-company stocks rose. The Russell 2000 gained 2.85 points, or 0.1%, to 2,079.31.

Gains in energy stocks, retailers and other companies that rely on consumer spending accounted for much of the S&P 500′s modest rise, keeping losses in the technology and communications sectors in check.

Most Fed officials agreed during their meeting last month that faster interest rate hikes would be needed “if inflation does not move down” as the central bank’s policymaking committee expects. As recently as December, Fed officials forecast that inflation, based on their preferred measure, would fall to an annual rate of 2.6%. It is currently 5.8%.

But Fed policymakers differ on how quickly to raise rates. On Monday, James Bullard, president of the Federal Reserve Bank of St. Louis, repeated his call for the Fed to take the aggressive step of raising its benchmark short-term rate by a full percentage point by July 1. Esther George, president of the Kansas City Fed, expressed support for a more “gradual” approach. And Mary Daly of the San Francisco Fed declined to commit herself to more than a modest rate hike next month.

Most analysts expect Fed officials to raise that forecast at their next meeting, in mid-March, to reflect the acceleration of consumer prices. Inflation has reached its highest pace in four decades, hammering household budgets and wiping out the benefit of rising wages.

Rising inflation has been crimping profits and revenue for businesses in a wide range of industries. Many companies have been raising prices to offset the costs, including cereal maker Kellogg. That has raised concerns that consumers could eventually pull back spending, though the latest report from the Commerce Department shows that retail sales remained strong in January as the threat of the omicron variant of COVID-19 faded.

The government reported Wednesday that retail sales surged 3.8% last month, whizzing past the projections of most economists. That compared to the prior month when sales slid 2.5%.

Investors brushed off the encouraging retail sales data, but the results and other solid economic updates remain reassuring for the bigger economic picture as the Fed starts tightening its interest rate policy,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.

“The Fed is moving, period,” she said. “That’s happening no matter what, so it’s better if along the way you have economic data that remains resilient.”

The potential for an escalating conflict between Russia and Ukraine has also been a key concern for investors this week. Broader markets rallied on Tuesday after Russia claimed to remove some of its troops amassed on the Ukraine border. Tensions still remain high as officials from NATO and the West cast doubt on those claims.

Energy prices have been particularly volatile so far this week. Russia is a major energy producer and a military conflict could disrupt supplies and jolt markets. U.S. benchmark crude oil prices rose 1.7%, reversing course from a 3.6% slump on Tuesday. Energy stocks gained ground on the reversal. ConocoPhillips rose 0.6%.

Wall Street is also monitoring the latest corporate earnings reports to gauge how companies are handling supply chain problems and pressure from rising inflation.

Airbnb rose 3.6% after reporting strong financial results and giving investors an encouraging revenue forecast. Walmart will report its results on Thursday.

ASX 200 to open lower​

The Australian share market looks set to give back some of yesterday’s gains on Thursday following a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning.

Stocks shook off an early slump and ended mixed on Wall Street Wednesday after minutes from the Federal Reserve’s latest policy meeting showed policymakers still leaning toward moving decisively to fight inflation.

Trading was choppy following the mid-afternoon release of the Fed minutes. The S&P 500 wound up 0.1% higher after having been down 0.9% in the early going. The Dow Jones Industrial Average slipped 0.2% and the Nasdaq composite fell 0.1%.

 

[bigdog]

https://apnews.com/article/russia-u...arkets-japan-41798a8891e12a33bf2a12b7f66fe291

Ukraine tensions send US stocks and bond yields lower

By DAMIAN J. TROISE and ALEX VEIGA

Stocks and bond yields fell sharply Thursday on Wall Street as escalating worries over the possibility that Russia may invade Ukraine rattled global financial markets.

The S&P 500 fell 2.1%, its biggest drop in two weeks and first decline in three days. The Dow Jones Industrial Average fell more than 600 points and the Nasdaq composite slid 2.9%. The losses wiped out the major indexes’ weekly gains.

About 85% of the stocks in the benchmark S&P 500 closed lower. The technology sector was the biggest drag on the index, along with communication stocks and companies that rely on consumer spending. Microsoft fell 2.9%, Facebook parent Meta slid 4.1% and Nike fell 2.5%.

Bond yields fell and dragged banks lower. The yield on the 10-year Treasury fell to 1.97% from 2.04% late Wednesday. Bank of America slid 3.4%.

Markets in Europe, which have been particularly sensitive to tensions in Ukraine, closed broadly lower.

The wave of selling came as President Joe Biden warned that Russia, which is believed to have built up some 150,000 military forces near Ukraine’s borders, could invade within days. Dignitaries raced for solutions but suspicions between East and West only seemed to grow, as NATO allies rejected Russian assertions it was pulling back troops from exercises that had fueled fears of an attack.

“We’re still at this level of inflation that is high and concerning,” said Tom Martin, senior portfolio manager with Globalt Investments. “Add on to that the uncertainty of what’s going on in Russia and Ukraine and you have some folks who just want to sit it out.”

The S&P 500 fell 94.75 points to 4,380.26. The index is now 8.7% below the all-time high it set on Jan. 3. The Dow slid 622.24 points, or 1.8%, to 34,312.03, while the tech-heavy Nasdaq lost 407.38 points to 13,716.72.

Small company stocks also fell broadly. The Russell 2000 index gave up 51.22 points, or 2.5%, to 2,028.09.

Markets have been unsettled all week by tensions in Ukraine, and the potential for a military conflict in Europe has made for volatile trading in energy markets. Russia is a major energy producer and a military conflict could disrupt supplies and jolt markets. U.S. crude oil prices fell 2%, while the price of natural gas fell 4.9%.

If Russia invades Ukraine and the U.S. and the West respond with economic sanctions, that could impede access to about 7% of the global energy market, Martin said.

The price of gold, traditionally a safe haven during geopolitical uncertainty, rose 1.6%.

The tensions over Ukraine have only added to worries investors face as the Federal Reserve prepares to raise interest rates to fight persistently rising inflation.

Wall Street has been looking for clues about how much and how quickly the central bank will begin raising interest rates. The minutes from the latest meeting of Fed officials released on Wednesday showed that most policymakers suggested that a faster pace of increases in the benchmark short-term interest rate “would likely be warranted.”

Inflation has spiked to a 40-year high and companies have been dealing with supply chain problems and higher costs by raising prices on finished goods for consumers. Many have also warned investors that profits, sales and overall operations will still be hurt by inflation.

The move to raise prices on goods has heightened concerns that consumers could eventually pull back spending, which could damage economic growth. Consumers haven’t pulled back yet, though, according to latest report from the Commerce Department showing that retail sales surged 3.8% in January as the threat of the omicron variant of COVID-19 faded.

Wall Street is also reviewing the latest round of corporate report cards. Walmart, the world’s largest retailer, rose 4% after reporting strong fourth-quarter financial results. Cisco Systems, which makes routers, gained 2.8% after raising its profit forecast for the year.

ASX 200 expected to sink​

Unfortunately, the Australian share market looks set to end the week in the red after Russian-Ukraine tensions weighed on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% lower this morning.

Stocks and bond yields fell sharply Thursday on Wall Street as escalating worries over the possibility that Russia may invade Ukraine rattled global financial markets.

The S&P 500 fell 2.1%, its biggest drop in two weeks and first decline in three days. The Dow Jones Industrial Average fell more than 600 points and the Nasdaq composite slid 2.9%. The losses wiped out the major indexes’ weekly gains.

 

[bigdog]

https://apnews.com/article/russia-u...s-asia-tokyo-206f74a9ef60fb663655dcc1aab373b7

Stocks fall again, handing Wall Street another losing week

By DAMIAN J. TROISE and ALEX VEIGA

Stocks capped a week of volatile trading on Wall Street with a broad sell-off Friday that left the major indexes with their second straight weekly loss.

The selling lost some momentum into the afternoon, but the intensified again in the final hour of trading. The S&P 500 and the Dow Jones Industrial Average each fell 0.7%. The Nasdaq composite bore the brunt of the selling, however, shedding 1.2%.

Treasury yields fell as investors shifted money into the safety of U.S. bonds. The yield on the 10-year Treasury, which affects rates on mortgages and other consumer loans, fell to 1.93% from 1.97%.

Markets have been turbulent all week as investors watch the latest developments in Ukraine, where Russia has been amassing troops on the border. The tensions are yet another concern for investors as they try to determine how the economy will react to rising inflation and looming interest rate hikes.

“Investors are facing geopolitical risks, Fed tightening and peak valuations,” said Peter Essele, head of portfolio management for Commonwealth Financial Network. “Anytime you get that kind of trifecta scenario, you’re going to see volatility.”

And then there’s the uncertainty of what could happen in Ukraine during this holiday weekend, with U.S. markets scheduled to be closed Monday in observance of President’s Day.

“You’re heading into a long weekend with no resolution on Russia or Ukraine, so you have some people just going to the sidelines a little bit,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.

The S&P 500 fell 31.39 points to 4,348.87. The benchmark index is now 9.3% below its all-time high set on Jan. 3.

The Dow fell 232.85 points to 34,079.18 and the Nasdaq gave up 168.65 points to 13,548.07. Small company stocks also fell, pulling the Russell 2000 index down 18.76 points, or 0.9%, to 2,009.33.

Tensions over Russia and Ukraine have been growing all week, throwing a curveball to markets that have been more focused on inflation, central banks’ monetary policy and economic growth. The U.S. has issued some of its starkest, most detailed warnings yet about how a Russian invasion of Ukraine might unfold, and its Western allies went on high alert for any attempts by the Kremlin to create a false pretext for a new war in Europe.

Russia is a major energy producer and a military conflict could disrupt energy supplies and make for extremely volatile energy prices.

Inflation remains a key concern for Wall Street as companies continue facing supply chain problems and higher costs, prompting warnings that operations will suffer through some or all of 2022. General Electric fell 5.9% after it warned that pressure from inflation and supply chain problems have hurt several of its businesses including healthcare, renewable energy and aviation. It expects the problems to persist through at least the first half of the year.

Video streaming company Roku slumped 22.3% after giving investors a weak revenue forecast and warning about persistent supply chain problems.

Weakness from several big technology stocks, which have more weight on indexes because of their size, helped pull the broader market lower. Intel fell 5.3%.

Retailers and travel-related companies also lost ground. Amazon shed 1.3% and Royal Caribbean fell 1.7%

Companies viewed as less risky investments, such as utilities, held up better than the rest of the market.

Investors remain focused on the Federal Reserve and its plan to raise interest rates in order to fight rising inflation. The latest minutes from a meeting of policymakers from the Fed confirmed that the central bank intends to move decisively to fight inflation with higher interest rates. Wall Street is trying to look ahead to determine how a more aggressive monetary policy from the Fed will impact markets, especially after years of ultra-low interest rates more supportive policies.

Federal Reserve Bank of New York President John Williams said Friday that the central bank should start raising interest rates next month to help rein in too-high inflation. But he added that the rate hikes may not have to begin with as big a bang as some have suggested.

“Personally, I don’t see any compelling argument to take a big step at the beginning,” Williams said following an event at New Jersey City University to discuss the economy and interest rates.

 

[Garpal Gumnut]

It is George Washington's Birthday tomorrow and the US markets will be closed.

So the ASX will be winging it for two trading days not one as usual.

gg

 

[bigdog]

ASX 200 expected to fall again​

The Australian share market looks set to start the week in the red following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% lower this morning.

On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 0.7%, and the Nasdaq tumbled 1.2%.

It is George Washington's Birthday tomorrow and the US markets will be closed.

So the ASX will be winging it for two trading days not one as usual.

gg

GG, thank you for pointing out the NYSE Washington's Birthday on Monday, February 21

 

[bigdog]

NYSE markets closed for Washington's Birthday on Monday, February 21


https://apnews.com/article/russia-u...lth-business-281f62598d89f1b1f6a7dd06a1c319c0

World shares mixed as investors eye Ukraine, inflation

By ELAINE KURTENBACH

World shares were mixed Monday as investors watched for developments in Ukraine after Russia rescinded earlier pledges to pull tens of thousands of its troops away from Ukraine’s northern border.

U.S. markets will be closed for a holiday but futures were higher. Shares rose in early European trading but fell in most Asian markets.

The White House said President Joe Biden had agreed “in principle” to meeting with Russian President Vladimir Putin if he refrains from launching an assault that U.S. officials say appears increasingly likely.

Russia’s decision extended military exercises that brought an estimated 30,000 Russian forces to Belarus, Ukraine’s northern neighbor. They had been due to end Sunday. The troops are among some 150,000 deployed along Ukraine’s borders, along with tanks, warplanes, artillery and other war materiel.

The concern that Russian troops could descend on the Ukrainian capital, Kyiv, a city of about 3 million people less than a three-hour drive away, has added to uncertainties for investors already jittery over central bank strategies to combat inflation.

Russia is a major energy producer and a military conflict also could disrupt energy supplies and make for extremely volatile energy prices.

Germany’s DAX gained 0.5% to 15,111.84 and the CAC 40 in Paris edged 0.2% higher. Britain’s FTSE 100 added 0.3% to 7,538.08. The future for the S&P 500 climbed 0.3% while that for the Dow industrials added 0.4%.

Markets are on “tenterhooks,” Mizuho Bank said in a commentary. But it added, “relief rallies appear to be emerging; drawing comfort from Presidents Biden and Putin having ‘accepted the principle’ of a summit; conditional upon Russia not invading Ukraine.”

Tokyo’s Nikkei 225 index lost 0.8% to 26,910.87, while the Hang Seng in Hong Kong shed 0.7% to 24,170.07. In Seoul, the Kospi gave up less than 1 point to 2,743.80. The Shanghai Composite index was unchanged at 3,490.61. India’s Sensex lost 0.4% and Thailand’s benchmark was 0.7% lower.

Australia’s S&P/ASX 200 gained 0.2% to 7,233.60 as the country reopened its borders to more international travel after nearly two years of being mostly sequestered due to the pandemic.

Vaccinated travelers were greeted at Sydney’s airport by jubilant well-wishers waving toy koalas and favorite Australian foods including Tim Tams chocolate cookies and jars of Vegemite spread.

Outbreaks of coronavirus fueled by the highly contagious omicron variant are also a worry. A preliminary reading on factory data for Japan on Monday showed a sharp drop in the manufacturing purchasing manager’s index, to 52.9 from 55.4 on a 0-100 scale where readings above 50 indicate expansion.

But analysts said they expect activity to rebound as the latest wave of infections subsides.

In Australia, shares in AGL, the country’s biggest electricity generator, jumped 10% after it said it had rejected an 8 billion Australian dollar ($5.8 billion) takeover bid from tech billionaire Mike Cannon-Brookes and Canadian investment firm Brookfield.

Shares in software company Atlassian, founded by Cannon-Brookes, fell 2%.

On Friday, stocks capped a week of volatile trading on Wall Street with a broad sell-off.

The S&P 500 and Dow Jones Industrial Average both slipped 0.7%. The Nasdaq composite bore the brunt of the selling, skidding 1.2%.

Small company stocks also fell, with the Russell 2000 index down 0.9%.

Treasury yields fell Friday, as investors shifted money into the safety of U.S. bonds. The yield on the 10-year Treasury, which affects rates on mortgages and other consumer loans, was steady at 1.93% early Monday.

Markets have been rocked by worries over how companies will cope with inflation at decades-high levels in many countries, and over whether consumers might pull back on spending to cope with higher costs.

Wall Street is looking ahead to determine how markets will react to a more aggressive monetary policy from the U.S. Federal Reserve as it begins tightening after two years of ultra-low interest rates and other supportive measures.

In other trading Monday, U.S. benchmark crude oil lost 15 cents to $90.06 per barrel in electronic trading on the New York Mercantile Exchange. It gained 17 cents to $90.21 on Friday.

Brent crude, the international pricing standard, gained 12 cents to $93.66 per barrel.

The U.S. dollar slipped to 114.86 Japanese yen from 115.12 yen late Friday. The euro rose to $1.1362 from $1.1324.

ASX 200 futures pointing lower​

The Australian share market is expected to open the day sharply lower this morning following a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 74 points or 1% lower.

In Europe, the DAX dropped 3%, the CAC fell 2%, and the FTSE lost 0.4%.


Wall Street was closed on Monday for the President’s Day holiday.

Rest of World Trading Monday

 

[bigdog]

https://apnews.com/article/russia-u...tokyo-europe-e6b1a6678833d81272b2dd7b130aa25a

Stocks slide further amid Ukraine crisis; S&P in correction

By DAMIAN J. TROISE and ALEX VEIGA

Stocks closed broadly lower Tuesday after Russia sent forces into Ukraine’s eastern region and the U.S., European Union and U.K. responded with economic sanctions. The rising geopolitical tensions kept financial markets on edge, pulling the S&P 500 into a correction — Wall Street speak for a drop of at least 10% from its recent peak — for the first time in more than three years.

The benchmark index fell 44.11 points, or 1%, to 4,304.76. That puts it 10.3% below the all-time high it set on Jan. 3. The last correction for the index was in December 2018. The Dow Jones Industrial Average and Nasdaq composite also lost more than 1%.

“We’re overdue, and right now the market has been knocked for a loop from the one-two punch of higher interest rates plus geopolitical tensions,” said Sam Stovall, chief investment strategist at CFRA.

The latest losses come as investors closely watched the crisis in Ukraine a day after Russia recognized the independence of several regions in Eastern Ukraine and decided to send in forces. On Tuesday afternoon, President Joe Biden announced the U.S. was ordering heavy financial sanctions against Russian banks and oligarchs, declaring that Moscow has flagrantly violated international law by invading Ukraine. Biden also said the U.S. was moving additional troops to the Baltic states on NATO’s eastern flank.

Earlier in the day, the 27 European Union members unanimously agreed to levy their own initial set of sanctions targeting Russian officials over their actions in Ukraine.

U.S. crude oil prices jumped 1.4% after earlier rising more than 3% as energy markets remained volatile. European natural gas prices jumped after Germany withdrew a key document needed for certification of the Nord Stream 2 gas pipeline from Russia.

European stock markets, which have been particularly sensitive to developments in the Russia-Ukraine crisis, closed mostly lower.

The Dow Jones Industrial Average fell 482.57 points, or 1.4%, to 33,596.61. The blue chip index had been down more than 700 points in the early going. The Nasdaq slid 166.55 points, or 1.2%, to 13,381.52.

Home Depot was the biggest weight on the Dow and the biggest decliner in the S&P 500. It slumped 8.9% as concerns over the home-improvement retailer’s profit margins outweighed an otherwise solid quarterly financial report.

Technology stocks, which have an outsized impact on market indexes because of their pricey valuations, also weighed heavily on the S&P 500. Apple shed 1.8%.

Small company stocks fared worse than the broader market. The Russell 2000 index fell 29.16 points, or 1.5%, to 1,980.17.

Bond yields rose. The yield on the 10-year Treasury rose to 1.93% from 1.92% late Friday. Stock and bond markets were closed on Monday for the Presidents Day holiday.

The crisis in Ukraine is yet another concern for investors who have begun 2022 trying to determine how the economy will fare amid rising inflation and looming interest rate hikes. Companies face supply chain problems and higher raw materials costs as demand for goods outpaces supply. The Federal Reserve plans on raising interest rates to combat inflation, but Wall Street is uncertain about how the number of rate hikes and their frequency will impact the broader market and economy.

Investors also focused on the latest round of corporate report cards, especially from department stores. Shares in Macy’s and Dillard’s initially rose after reporting solid quarterly results, but ultimately shed their gains. Macy’s fell 5% and Dillard’s slid 4.4%.

Mattress maker Tempur Sealy International fell 19.4% after reporting disappointing financial results.

Deal making also helped lift several stocks. Television station owner Tegna rose 7.1% following a report that it’s being bought by Standard General. Book publisher Houghton Mifflin Harcourt rose 15% on news it’s being bought by Veritas Capital.

ASX 200 expected to fall again​

The Australian share market looks set to fall again on Wednesday following a tough night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% lower this morning.

Stocks closed broadly lower Tuesday after Russia sent forces into Ukraine’s eastern region and the U.S., European Union and U.K. responded with economic sanctions. The rising geopolitical tensions kept financial markets on edge, pulling the S&P 500 into a correction — Wall Street speak for a drop of at least 10% from its recent peak — for the first time in more than three years.

The benchmark S&P index fell 44.11 points, or 1%, to 4,304.76. That puts it 10.3% below the all-time high it set on Jan. 3. The last correction for the index was in December 2018. The Dow Jones Industrial Average and Nasdaq composite also lost more than 1%.

 

[bigdog]

https://apnews.com/article/russia-u...tock-markets-3c8fdbbf3429e70823eeff74acd04b5f

Wall Street losses mount amid simmering Ukraine crisis

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street’s losses mounted Wednesday as world leaders waited to see if Russian President Vladimir Putin orders troops deeper into Ukraine.

The S&P 500 fell 1.8% to an 8-month low, deepening the benchmark index’s “correction,” or a loss of 10% from its recent peak. More than 85% of stocks in the S&P 500 fell, with technology companies weighing down the index most.

The technology-heavy Nasdaq lost 2.6% led by steep losses in Apple and Microsoft. The Dow Jones Industrial Average fell 1.4%.

U.S. Treasury yields inched higher, as did gold prices.

Wall Street has been closely watching developments in Ukraine, where Russia has amassed troops for a new potential invasion. Russia has started evacuating its embassy in Kyiv. It has already sent soldiers into eastern regions of Ukraine after recognizing the independence of some rebel-held areas.

The U.S. and western nations have responded with sanctions and Germany withdrew a document needed for certification of the Nord Stream 2 gas pipeline from Russia. The tensions have made energy prices volatile as any conflict between Russia and Ukraine disrupt supplies.

The latest losses added to Tuesday’s slump and the S&P 500′s slide into a correction. The index had its last correction in the spring of 2020, as the pandemic upended the global economy. That correction worsened into a bear market — a decline of 20% or more — as the S&P 500 sank nearly 34% in about a month.

“We are clearly, solidly in correction territory at this point,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “We need some kind of positive news, and there really isn’t a whole lot right now.”

The S&P 500 fell 79.26 points to 4,225.50. It’s now 11.9% below the record high it set Jan. 3.

The Dow dropped 464.85 points to 33,131.76, while the Nasdaq slid 344.03 points to 13,037.49. The index is now 18.8% below its November 2021 high.

Small company stocks also lost ground. The Russell 2000 index fell 36.08 points, or 1.8%, to 1,944.09.

Technology stocks led the broad losses. Microsoft and Apple fell 2.6%. The sector has an outsized influence on the S&P 500 because of Big Tech companies’ high valuations.

Retailers and other companies that rely on direct consumer spending also weighed on the market. Amazon fell 3.6% and Starbucks shed 3.7%.

U.S. crude oil prices remained volatile, though energy stocks gained ground. Chevron rose 2.4%.

Bond yields edged higher. The yield on the 10-year Treasury rose to 1.98% from 1.95% late Tuesday.

The potential for a war in eastern Europe has only added to the concerns investors had about the global economy. Stocks have been slipping in 2022 as investors gauge how rising inflation will impact economic growth and whether the Federal Reserve’s plan to raise interest rates this year will cool inflation.

Wall Street is also still reviewing how companies are dealing with supply chain problems and higher costs in their latest round of corporate report cards.

Lowe’s rose 0.2% after raising its profit forecast for the year following a strong fourth-quarter financial report. Security software maker Palo Alto Networks rose 0.4% after raising its profit forecast on strong demand for cybersecurity.

TJX, the parent of T.J. Maxx and Marshalls, fell 4.2% after reporting disappointing fourth-quarter financial results.

ASX 200 to open deep in the red​

The Australian share market looks set to give back all of yesterday’s gains following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 74 points or 1% lower this morning.

Wall Street’s losses mounted Wednesday as world leaders waited to see if Russian President Vladimir Putin orders troops deeper into Ukraine.

The S&P 500 fell 1.8% to an 8-month low, deepening the benchmark index’s “correction,” or a loss of 10% from its recent peak. More than 85% of stocks in the S&P 500 fell, with technology companies weighing down the index most.

The technology-heavy Nasdaq lost 2.6% led by steep losses in Apple and Microsoft. The Dow Jones Industrial Average fell 1.4%.

 

[bigdog]

https://apnews.com/article/russia-u...-russia-asia-bdc394cc724018f570856fb33f2889b4

Wall Street reels, then recovers after invasion of Ukraine

By STAN CHOE

Markets shuddered Thursday and then swung wildly after Russia’s invasion of Ukraine threatened to push the high inflation squeezing the global economy even higher.

Initially, stocks tumbled as prices surged for oil, wheat and other commodities on worries the conflict would disrupt global supplies. But the moves moderated as the day progressed, particularly after President Joe Biden said he wanted to limit the economic pain for Americans and announced new sanctions that fell short of what some had suggested.

On Wall Street, the S&P 500 tumbled 2.6% at the start of trading before erasing the drop and flipping to a gain of 1.5%. The heaviest losses hit stocks in Europe, after officials called Russia’s nearby moves a “brutal act of war,” with the German DAX down 4%.

Beyond its tragic human toll, the conflict looked set to send prices even higher at gasoline pumps and grocery stores around the world. Russia and Ukraine are major producers not only of energy but also grains and various other commodities.

Oil prices on both sides of the Atlantic briefly jumped above $100 per barrel to their highest levels since 2014. But they gave back much of their gains after Biden said the sanctions package is “specifically designed to allow energy payments to continue.” While he described the sanctions as severe, Ukrainian officials urged the U.S. and West to go further and cut Russia from a crucial financial payments system called SWIFT.

Afterward, the price of U.S. oil settled at $92.81, up 71 cents for the day, well below the $100.54 it had touched earlier in the day.

Still, prices rose for everything from heating oil to wheat to gasoline. As with stocks, the movements were sharper in Europe than in the U.S. because its economy is more closely tied to Russia and Ukraine. The spot price in Europe for natural gas jumped more than 50%.

Increases in energy and food prices could amplify worries about inflation, which in January hit its hottest level in the United States in a couple generations, and what the Federal Reserve will do in turn to rein it in.

The Fed looks certain to raise rates for the first time since 2018, with the only question being how quickly and how aggressively it will move, starting next month.

In the past, the Fed has sometimes delayed big policy decisions amid uncertainty about the Kosovo war and the U.S. invasion of Iraq, for example, according to Goldman Sachs. But economists at the bank say they still expect the Fed to raise rates steadily at its upcoming meetings.

The Ukraine tensions probably just make it less likely the Fed will start the process with a bigger-than-usual increase in rates, something some Fed officials had recently suggested.

“The Fed may become more worried about the impact on economic growth and will probably want to tread more cautiously,” said Kristina Hooper, chief global market strategist at Invesco.

The Fed was already saddled with the delicate task of raising interest rates enough to stamp out high inflation but not so much as to choke the economy into a recession. Strategists at Evercore ISI said that risk still remains, and has become even more complicated by the attack on Ukraine, but that it’s “substantially greater in Europe relative to the US.”

Many investors also said that past global events, such as an invasion, have had only short-term effects on markets that last a few weeks or months.

With expectations falling for a bigger-than-usual increase in rates next month, stocks that tend to benefit the most from low interest rates led the way for indexes to pare their losses through the day. That put the spotlight on big tech stocks, and Amazon, Microsoft and Nvidia all rose 4.5% or more.

That helped the Nasdaq composite swing from a 3.4% loss in the morning to a 3.3% gain by the end of the day, rising 436.10 points to 13,473.59. It was a remarkable turnaround after the Nasdaq during the morning was on on track to close 20% below its record high for the first time since the coronavirus collapsed the economy in 2020.

The Dow Jones Industrial Average, which isn’t as influenced by big tech stocks, rose a more modest 92.07 points, or 0.3%, to 33,223.83. It rallied back from an earlier 859-point loss. The S&P 500 rose 63.20 points to 4,288.70.

Huge swings also rocked the bond market, where yields initially sank as investors moved into assets that looked to offer safer returns than stocks. But yields recovered through the day, and the 10-year Treasury yield was 1.96% in late trading, close to the 1.97% it was at late Wednesday.

The FTSE 100 in London fell 3.9% after Europe awakened to news of explosions in the Ukrainian capital of Kyiv, the major city of Kharkiv and other areas. The CAC 40 in Paris lost 3.8%. Markets in Asia fell nearly 2% or more.

Moscow’s stock exchange briefly suspended trading on all its markets on Thursday morning. After trading resumed, Russian indexes plunged by a third or more.

“How bad could this get? Well, how long is a piece of string, right?” said Jonas Goltermann, senior global markets economist at Capital Economics. “There aren’t that many obvious examples of this type of shock to markets.”

ASX 200 expected to rise​

The Australian share market looks set to end the week with a small gain after US markets reversed their declines. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% higher this morning.

Markets shuddered Thursday and then swung wildly after Russia’s invasion of Ukraine threatened to push the high inflation squeezing the global economy even higher.

Initially, stocks tumbled as prices surged for oil, wheat and other commodities on worries the conflict would disrupt global supplies. But the moves moderated as the day progressed, particularly after President Joe Biden said he wanted to limit the economic pain for Americans and announced new sanctions that fell short of what some had suggested.

On Wall Street, the S&P 500 tumbled 2.6% at the start of trading before erasing the drop and flipping to a gain of 1.5%. The heaviest losses hit stocks in Europe, after officials called Russia’s nearby moves a “brutal act of war,” with the German DAX down 4%.

 

[bigdog]

https://apnews.com/article/russia-u...ope-shanghai-fb50fd3b1e52ed2b753e4b90d795e09a

Stocks up, fear down on Wall Street despite Ukraine invasion

By STAN CHOE, DAMIAN J. TROISE and ALEX VEIGA

Wall Street capped a turbulent week of trading Friday with a broad rally for stocks as relief flowed through the market, even as deadly attacks raged in Ukraine. Oil fell and investors turned away from gold and other traditional havens they favor when fear is high.

The S&P 500 climbed 2.2% and notched its first weekly gain in three weeks. The benchmark index was following up on a wild Thursday when it careened from a 2.6% loss to a gain of 1.5%. Stocks have swung sharply with uncertainty about how much Russia’s invasion will push up inflation, particularly oil and natural gas prices, and drag on the global economy.

Such big swings are likely to continue, with so much uncertainty not only about Ukraine but also about interest rates. The Federal Reserve is caught in a delicate dance where it has to raise interest rates enough to rein in high inflation but not so much as to cause a recession.

On Friday, at least, the mood was calmer. A measure of fear on Wall Street, which shows how worried traders are about upcoming swings in stock prices, fell 9%. Gold dropped 2% after rallying for weeks on worries about Russia and Ukraine. Treasury yields held relatively steady, signaling investors weren’t scrambling for safety as they had immediately after Russia’s invasion.

“The market acts emotionally when these things happen because it is so difficult to model,” said Mark Hackett, chief of investment research at Nationwide.

A U.S. government report showed that that inflation last month was roughly in line with economists’ expectations, though it was still high. It also showed the main engine of the U.S. economy, spending by consumers, strengthened by more than economists expected.

“Lost in a lot of focus on Russia, the Federal Reserve and inflation is the fact that the economy is in a fairly strong position,” Hackett said.

The economic reports could be enough to convince the Federal Reserve to hold off on raising short-term rates next month by double its usual increase, at least for now, said Brian Jacobsen, senior investment strategist at Allspring Global Investments. That’s something some Fed officials had suggested, and it’s something investors usually fear because higher rates put downward pressure on all kinds of investments. Whatever size it is, the rate increase would be the first since 2018.

All the renewed calm in global financial markets, though, was against the backdrop of Russia pressing its invasion of Ukraine to the outskirts of the capital Friday after unleashing airstrikes on cities and military bases and sending in troops and tanks from three sides in what amounts to the largest ground conflict in Europe since World War II.

Still, investors may have been encouraged by looking at how past geopolitical crises, including wars, have affected the stock market. Generally, stocks are initially put under pressure before conflict breaks out, but then they tend to recover between three and six months later, said Zachary Hill, head of portfolio management at Horizon Investments.

Hill said the turning point for the market this week came as investors judged the U.S. sanctions on Russia to be less severe than expected.

“The sanctions were not as bad as feared,” he said.

The S&P 500 rose 95.95 points to 4,384.65. The Dow Jones Industrial Average rose 834.92 points, or 2.5%, to 34,058.75. The Nasdaq composite gained 221.04 points, or 1.6%, to 13,694.62 after swinging between modest gains and losses. A day earlier, it briefly fell more than 20% below its record high, before roaring back suddenly.

Smaller company stocks also notched gains. The Russell 2000 index rose 44.92 points, or 2.3%, to 2,040.923.

Prices for everything from stocks to Bitcoin have been swinging sharply with the uncertainty about Russia and Ukraine, but the market’s brightest spotlight has perhaps been on oil and natural gas. Russia is one of the world’s largest producers of both oil and gas, and European consumers are particularly reliant on it.

Oil prices fell on both sides of the Atlantic, a day after they briefly topped $100 per barrel amid worries that the conflict and upcoming sanctions could disrupt supplies. Benchmark U.S. crude slipped 1.3% to $91.59 per barrel. Brent crude, the international standard, fell 1.2% to $97.93.

When announcing sanctions on Russia that he described as tough on Thursday, President Joe Biden said that he will “do everything in my power to limit the pain the American people are feeling at the gas pump.” That led to some relief that sanctions were not as severe as they could have been, and the drop in oil prices helped to lift stocks.

“We’re not going to do anything which causes an unintended disruption to the flow of energy, as the global economic recovery is still underway,” Deputy National Economic Council Director Daleep Singh said Thursday.

Stocks also rose across much of Europe and Asia Friday, recovering some of their sharp losses from immediately after Russia’s invasion. London’s FTSE 100 gained 3.9% while France’s CAC 40 rose 3.6% and Germany’s DAX rose 3.7%.

Market players might be betting that the crisis could slow moves by central banks to cool inflation by raising interest rates and unwinding other support for pandemic-burdened economies, said Ipek Ozkardeskaya of Swissquote Bank SA.

“But in reality, it’s about volatility, high volatility that results from a high-voltage environment,” Ozkardeskaya wrote in a commentary. “It’s impossible to tell what direction the market will take in the next five minutes.”

 

[bigdog]

ASX 200 expected to surge higher​

The Australian share market looks set to start the week on a very positive note following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 166 points or 2.4% higher this morning.

On Wall Street, the Dow Jones jumped 2.5%, the S&P 500 climbed 2.25%, and the Nasdaq rose 1.6%.

 

[bigdog]

https://apnews.com/article/russia-u...s-japan-asia-a97accbad0c72f21bdbecb863ab33be5

Swings return to Wall Street, oil up after Russia sanctions

By STAN CHOE and ALEX VEIGA

Markets quivered Monday amid worries about how high oil prices will go and how badly the global economy will get hit after the U.S. and allies upped the financial pressure on Russia for its invasion of Ukraine.

Stocks swung up and down several times, leaving the major indexes mixed. Investors herded into bonds in search of safety, pushing yields sharply lower, and the value of the Russian ruble plunged to a record low.

The S&P 500, which had been down as much as 1.6%, recouped much of its losses to finish 0.2% lower. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite rose 0.4% after coming back from a 1.1% slide.

The volatile trading followed Western allies’ move over the weekend to block some Russian banks from a key global payments system. The U.S. Treasury Department also announced new and powerful sanctions against Russia’s central bank.

The Biden administration said Germany, France, the UK, Italy, Japan, European Union and others will join the U.S. in hitting Russia’s central bank, which said the Moscow stock exchange would remain closed Monday.

Stocks on Wall Street trimmed their losses through the morning, at one point flipping to modest gains, after big tech stocks and others that benefit most from low interest rates rallied. The war in Ukraine is raising expectations that the Federal Reserve may have to take it more slowly in its campaign to raise interest rates in order to fight inflation.

Other markets showed more fear about the rising antagonism between Russia and the U.S. and its allies.

Oil prices on both sides of the Atlantic climbed more than 3% amid concerns about what will happen to crude supplies, because Russia is one of the world’s largest energy producers. That’s increasing the pressure on the already high inflation squeezing households around the world.

In search of safer returns, investors plowed into U.S. government bonds, which drove the yield of the 10-year Treasury down about 0.15 percentage points to 1.83%, its biggest drop since the omicron coronavirus variant first rattled investors. Gold rose 0.7%.

The gyrations are just the latest sharp swings for markets, which were relaxing in relief just on Friday, in part on thoughts that sanctions against Russia weren’t as severe as they could have been. More sharp turns are likely in the hours and days ahead given all the uncertainty about the war.

“Right now the situation is fluid and investors are looking for the next shoe to drop,” said Barry Bannister, chief equity strategist at Stifel.

The pressure on Russia isn’t coming only from governments. London-based energy giant BP said Sunday it would dump its investment in Rosneft, a Russian energy company. BP has held a nearly 20% stake in Rosneft since 2013, and its shares listed in London fell 3.9%.

The S&P 500 fell 10.71 points to 4,373.94. The Dow, which had dropped 589 points, ended down 166.15 points to 33,892.60. The Nasdaq rose 56.77 points to 13,751.40.

The Russell 2000 index of small company stocks also bounced back from an early slide, adding 7.16 points, or 0.4%, to 2,048.09.

Markets had already been on edge before Russia’s invasion, worried about upcoming hikes in interest rates by the Federal Reserve, which would be the first since 2018.

Fed Chair Jerome Powell is scheduled to testify before Congress later this week, where he could offer clues on the path for interest rates. A report on Friday will also show whether strength in the U.S. jobs market continued in February, which would give the Fed more leeway to raise rates.

“This situation is throwing the inflation question into a little bit of tailspin,” said Greg Bassuk, CEO of AXS Investments. “The eyes are going to be on Powell to see the extent to which the Fed believes these geopolitical events could impact their timing and extend their rate hikes.”

The Fed is caught on a narrow tightrope, needing to raise rates enough to stamp out high inflation but not by so much as to choke the economy into a recession. Higher rates also put downward pressure on all kinds of investments from stocks to cryptocurrencies.

Given the uncertainty surrounding Ukraine, investors have sharply pared back bets the Fed will raise rates in March by double the usual increase. Traders are now forecasting just a 10.4% chance of that, according to CME Group. A day earlier, they were pricing in a 24% probability.

“Expectations are that central banks are going to take a somewhat slower and more cautious approach as a result of this crisis, so that provides a positive offset for risky assets,” Jonas Golterman, senior global markets economist at Capital Economics, said in an online briefing Monday.

Energy stocks in the S&P 500 jumped 2.6%. Defense-related companies also gained, with Lockheed Martin up 6.7%.

Financial analysts say wars and other such scary geopolitical events tend to have only a temporary effect on markets, perhaps lasting weeks or months. But in the moment, fear is nevertheless still higher.

Putin’s order that Russian nuclear weapons stand at increased readiness to launch ratcheted up tensions with Europe and the United States and revived dormant fears from the Cold War era.

The Russian central bank raised its key rate to 20% from 9.5% in a desperate attempt to shore up the plummeting ruble and prevent a run on banks. The Russian currency plunged at one point plunged below 0.9 cents before climbing back to a shade above a penny, though still down nearly 15%.

The ruble had plunged more than 30% after the move to block Russian banks from the SWIFT payments system. Among other things, the sanctions are meant to crimp the Russian central bank’s access to over $600 billion in reserves and hinder its ability to support the ruble.

ASX 200 futures pointing slightly higher​

The Australian share market is expected to open the day slightly higher this morning despite a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 5 points higher.

Stocks on Wall Street trimmed their losses through the morning, at one point flipping to modest gains, after big tech stocks and others that benefit most from low interest rates rallied.

The S&P 500, which had been down as much as 1.6%, recouped much of its losses to finish 0.2% lower. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite rose 0.4% after coming back from a 1.1% slide

The S&P 500 fell 10.71 points to 4,373.94. The Dow, which had dropped 589 points, ended down 166.15 points to 33,892.60. The Nasdaq rose 56.77 points to 13,751.40.

I have added the "MOEX Russia Index" on line 6 below which did not update overnight and six month chart is:

Also Russia is not reporting any updates to trading yesterday Monday Feb 28 (all 0.0 change)

 

[bigdog]

Stocks fall, oil tops $100 a barrel as Ukraine war rages

Asian stock markets have slid and oil prices surged more than $5 per barrel as Russian forces stepped up attacks on Ukrainian cities.

apnews.com

Stocks fall, oil tops $100 a barrel as Ukraine war rages

By DAMIAN J. TROISE and ALEX VEIGA

Oil prices soared and stocks fell on Wall Street Tuesday as investors shifted more money into ultra-safe U.S. government bonds in response to Russia’s escalating war on Ukraine.

Another day of volatile trading left stocks broadly lower as investors tried to measure how the conflict will impact the global economy. The S&P 500 index fell 1.5%. The Dow Jones Industrial Average fell 1.8% and the Nasdaq composite slid 1.6%. The declines add to the market’s losses after a two-month skid for the S&P 500.

The bigger moves came from the markets for oil, agricultural commodities and government bonds. Oil has been a key concern because Russia is one of the world’s largest energy producers. The latest bump in prices increases pressure on persistently high inflation that threatens households around the world.

U.S. benchmark crude oil jumped 8% to $103.41 per barrel. That’s the biggest single-day jump since May 2020 and the highest price since 2014. Brent crude, the international standard, surged 7.1% to $104.97.

The crisis in Ukraine prompted an extraordinary meeting of the International Energy Agency’s board, which resulted in all 31 member countries agreeing to release 60 million barrels of oil from their strategic reserves.

Russia’s invasion of Ukraine has also put more pressure on agricultural commodity prices, which were also already getting pushed higher with rising inflation. Wheat and corn prices rose more than 5% per bushel and are already up more than 20% so far this year. Ukraine is a key exporter of both crops.

“A whole confluence of factors are impacting markets,” said Bill Northey, senior investment director at U.S. Bank Wealth Management. “We see that manifesting not only in (stock) markets right now, which certainly have been more volatile over the course of the past two weeks since the invasion of Ukraine, but we’re also seeing it now across the rates complex as well as the commodities complex.”

Investors continued putting money into bonds, pushing yields lower. The yield on the 10-year Treasury fell sharply, sliding to 1.73% from 1.83% late Monday. It is now back to where it was in January. In February, it had crossed back above 2% for the first time in over two years. The 10-year Treasury yield is used to set interest rates on mortgages and many other kinds of loans.

The sharp pullback in bond yields weighed on banks. JPMorgan Chase fell 3.8% and Bank of America slid 3.9%.

More than 70% of the stocks in the S&P 500 closed lower, with technology, industrials and communication companies among the biggest drags on the benchmark index. Only the energy sector notched a gain. Occidental Petroleum jumped 7%.

All told, the S&P 500 fell 67.68 points to 4,306.26. The Dow, which had been down 763 points, ended down 597.65 points to 33,294.95. The Nasdaq slid 218.94 points to 13,532.46.

Small company stocks fared worse than the broader market. The Russell 2000 index slid 39.58 points, or 1.9%, to 2,008.51.

The conflict in Ukraine has shaken markets globally and added to worries about economic growth in the face of rising inflation and plans from central banks to raise interest rates. The U.S. and its allies have been putting significant pressure on Russia’s financial system as that nation continues its push into Ukraine and its key cities.

The value of the Russian ruble plunged to a record low Monday after Western countries moved to block some Russian banks from a key global payments system. Also Monday, the U.S. Treasury Department announced more sanctions against Russia’s central bank.

Various companies have announced plans to scale back or pull out from ventures in Russia, or to suspend operations in Ukraine due to the conflict. The Russian central bank has also raised its key rate to 20% from 9.5% in a desperate attempt to shore up the plummeting ruble and prevent a run on banks. Russia’s stock market remained closed on Tuesday.

Investors are closely monitoring developments in Ukraine while awaiting the latest updates from the Fed and U.S. government on the economy. Fed Chair Jerome Powell is to testify before Congress later this week and that could offer clues on the path ahead for raising interest rates.

“Investors will certainly be looking for cues around whether the Fed chair is emphasizing their inflation-fighting responsibilities and then also balancing that with the potential impact that this military conflict may have” on inflation, Northey said.

Meanwhile, a report on Friday will also show whether strength in the U.S. jobs market continued in February, allowing the Fed more leeway to raise rates.

Several stocks made big moves on earnings. Target jumped 9.8% for the biggest gain in the S&P 500 after reporting strong fourth-quarter financial results and saying it will invest up to $5 billion this year in physical stores, remodels and other initiatives. Workday rose 4.9% after reporting encouraging earnings.

ASX 200 expected to fall heavily​

The Australian share market looks set to fall heavily on Wednesday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 1% lower this morning.

Oil prices soared and stocks fell on Wall Street Tuesday as investors shifted more money into ultra-safe U.S. government bonds in response to Russia’s escalating war on Ukraine.

Another day of volatile trading left stocks broadly lower as investors tried to measure how the conflict will impact the global economy. The S&P 500 index fell 1.5%. The Dow Jones Industrial Average fell 1.8% and the Nasdaq composite slid 1.6%. The declines add to the market’s losses after a two-month skid for the S&P 500.

 

[bigdog]

The Russian IMOEC.ME MOEX Russia Index has now been closed for all three days this week!!


https://apnews.com/article/russia-u...rkets-sydney-f71aa1336ec2e6e8ea9751aad4974dd3

Wall Street roars back to rally mode, even as oil rises anew

By STAN CHOE and ALEX VEIGA

Wall Street took another sharp swing Wednesday, this time back to rally mode, as stocks and Treasury yields rose even as U.S. crude oil prices climbed to the highest level in more than a decade.

The S&P 500 rose 1.9%, recouping its losses from earlier in the week, after Federal Reserve Chair Jerome Powell said he supports a more modest rise in interest rates this month than some investors had feared. He also said he still expects inflation, which is at its highest level in 40 years, to moderate through the year.

“Although we’ve had some Fed governors lately saying ‘Oh my God, this is such a huge crisis,’ the conventional wisdom is slow and steady wins the race right now,” said J.J. Kinahan, chief strategist with TD Ameritrade.

The comments helped drive the market higher, adding to modest gains from earlier in the morning. Other areas of the market also gained ground a day after worries about Russia’s invasion of Ukraine sent the S&P 500 tumbling 1.5% and prices soaring for all kinds of commodities.

Treasury yields jumped to recover some of their steep losses from the past week. Gold receded, and a measure of nervousness among stock investors on Wall Street eased after swinging sharply in recent days.

“We’ve seen wild swings, but not major changes in the indexes,” said Jeff Kleintop, chief global investment strategist at Charles Schwab. “Geopolitical conflicts can be very unsettling, but you don’t tend to get bear markets from these, just periods of volatility.”

Markets have been spinning wildly as investors try, sometimes blindly, to gauge how high Russia’s attack on Ukraine will push prices for oil, wheat and other commodities where the region is a major producer. On top of that are worries about what upcoming hikes in interest rates by the Federal Reserve and other central banks around the world will do to the economy and inflation.

Powell said in testimony to Congress that the Fed is set to raise its key interest rate for the first time since 2018. But he also said the attack on Ukraine may have muddied conditions, with its impact on the U.S. economy “highly uncertain,” adding that “we’re never on autopilot.”

The Fed is balancing a tightrope where it needs to raise interest rates enough to rein in the highest inflation in generations but not so much that it pushes the economy into a recession. All the while, higher interest rates tend to put downward pressure on stocks and most other investments.

The yield on the 10-year Treasury leaped to 1.89% from 1.72% late Tuesday, while the two-year Treasury surged to 1.53% from 1.31%. Yields, though, remain well below where they were before Russia’s invasion. The 10-year yield was above 2% last month, before it plunged as investors plowed into investments seen as safer amid worries about war.

The price of U.S. oil jumped another 7% to $110.60 per barrel, the highest level in just over a decade. Brent crude, the international standard, climbed 7.6% to $112.93 per barrel.

Leaders of OPEC and other major oil-producing countries decided Wednesday to stick with their plan to gradually increase oil production. The OPEC+ coalition of oil producers, made up of OPEC members led by Saudi Arabia and non-cartel members led by Russia, chose to increase oil production by 400,000 barrels per day in April.

The move follows a perhaps less impactful decision by the United States and other major governments in the International Energy Agency to release 60 million barrels from strategic reserves to boost supplies.

“Markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply jeopardized,” Tan Boon Heng of Mizuho Bank said in a report. “Russia pumps more than that in just six days.”

In the stock market, all the uncertainty about oil prices and inflation has led to big swings not only by the day but also by the hour. The S&P 500 swung between gains of 0.4% and 2.2% Wednesday. It closed 80.28 points higher to 4,386.54.

The Dow Jones Industrial Average rose 596.40 points, or 1.8%, to 33,891.35, while the Nasdaq composite gained 219.56 points, or 1.6%, to 13,752.02.

More than 90% of stocks in the S&P 500 rose, with technology, financial and health care companies accounting for a big share of the rally. Bank stocks led the gainers, climbing 2.6%, as higher longer-term interest rates can mean bigger profits for them making loans. Energy stocks also helped lift the index as they rode higher energy prices.

Ross Stores climbed 6.1% after the retail chain reported stronger profit for its last quarter than analysts expected.

Ford jumped 8.4% after it said it was accelerating its transformation into an electric-vehicle company and split its EV and internal combustion operations into two individual businesses.

Stock markets around the world were mixed. France’s CAC 40 rose 1.6%, Germany’s DAX returned 0.7% and Japan’s Nikkei 225 fell 1.7%.

Russia’s central bank said stock trading on the Moscow exchange would remain closed Wednesday for a third day, though trading of currencies and precious metals would resume for the first time this week.

Late Tuesday, President Joe Biden announced he was joining U.S. allies in closing the country’s air space to Russian aircraft, the latest in a set of sanctions and other measures meant to isolate Russia.

But Biden also said in his annual State of the Union speech that he would try to cushion Americans against the impact of higher oil prices. “I will use every tool at our disposal to protect American businesses and consumers,” Biden said.

ASX 200 to open higher​

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 56 points or 0.8% higher this morning.

In the NYSE stock market, all the uncertainty about oil prices and inflation has led to big swings not only by the day but also by the hour. The S&P 500 swung between gains of 0.4% and 2.2% Wednesday. It closed 80.28 points higher to 4,386.54.

The Dow Jones Industrial Average rose 596.40 points, or 1.8%, to 33,891.35, while the Nasdaq composite gained 219.56 points, or 1.6%, to 13,752.02

 

[bigdog]

Trading on the Moscow exchange remained closed Thursday and now for four days (refer MOEX Russia Index)

https://apnews.com/article/russia-u...-sydney-asia-0cda31b9e22a7a8667b2513340705c64

Stocks end another bumpy day lower and crude oil prices ease

By DAMIAN J. TROISE and ALEX VEIGA

Stocks fell and oil prices eased back Thursday after another bumpy day of trading on Wall Street as markets remained anxious about the broader impact of Russia’s invasion of Ukraine.

Major indexes veered up and down for much of the day before a late-day slide pushed them into the red. The S&P 500 shed a 0.7% gain to close 0.5% lower, while the Dow Jones Industrial Average fell 0.3%. The Nasdaq composite fell 1.6%, weighed down by technology stocks, which accounted for a big share of the market’s decline. The pullback left the indexes on pace for weekly losses.

Bond yields were mostly steady. The yield on the 10-year Treasury slipped to 1.85% from 1.86% late Wednesday.

Stocks rallied a day earlier after Federal Reserve Chair Jerome Powell said he favored a modest interest rate increase at the Fed’s policy meeting in two weeks, bringing relief to investors who had feared he would back more aggressive moves to fight inflation.

“We’ve gotten a lot of clarity on what the Fed plans to do,” said Liz Young, chief investment strategist at SoFi. “But we’ve got this overhanging cloud of the geopolitical risk and oil prices still pressuring sentiment a little bit.”

The S&P 500 fell 23.05 points to 4,363.49. The Dow slid 96.69 points to 33,794.66. The Nasdaq dropped 214.07 points to 13,537.94.

Smaller company stocks also lost ground. The Russell 2000 index fell 26.46 points, or 1.3%, to 2,032.41.

Communication stocks, retailers and other companies that rely on direct consumer spending had some of the broadest losses. Sectors that are viewed as less risky, including utilities and household goods makers, gained ground.

The broader market remains volatile as investors continue to worry about the conflict in Europe along with rising inflation and the impact on economic growth and how central banks around the world act to try and restrain inflation.

The economic fallout from the Russian invasion expanded as Fitch Ratings and Moody’s Ratings cut Russia’s credit rating. The agencies said the invasion and Western sanctions have hurt Moscow’s ability to repay debts and raised risks for the economy and stability.

The London Stock Exchange said it had suspended trading in shares of 27 companies with links to Russia, including some of the biggest in energy and steel, such as Lukoil, Gazprom, Sberbank, Rosneft and Magnitogorsk Iron & Steel Works. Those shares lost most of their value prior to the suspension. Rosneft shares dropped from $7.91 on Feb. 16 to 60 cents on March 2, while Sberbank shares plunged from $14.90 to 5 cents in that same time frame.

Trading on the Moscow exchange remained closed Thursday. Russia’s ruble lost another 15% against the U.S. dollar and is worth less than 1 cent. It has plunged since Western governments imposed sanctions that cut off much of Russia’s access to the global financial system.

The exposure and overlap that U.S. markets have to Russia is relatively low. The real risk is the exposure that European banks have to Russia, Young said.

“If European banks start to feel the contagion of that, then it’s about what’s our exposure to Europe, which surprisingly is still reasonably low,” she said. “That doesn’t mean there’s not sentiment risk. Nobody likes to hear about financial markets freezing up.”

Russia’s invasion of Ukraine has been the dominant issue for investors all week as they try to assess its global economic impact. Russia is a key oil producer and prices have been rising as global supplies remain threatened by the conflict, raising concerns that persistent inflation could become even hotter.

Leaders of OPEC and other major oil-producing countries are sticking with plans to gradually increase oil production. Meanwhile, the U.S. and other major governments in the International Energy Agency plan to release 60 million barrels from strategic reserves to boost supplies.

The price of U.S. benchmark crude oil fell 2.6% to $107.67 a barrel and Brent crude, the international standard, fell 2.2% to $110.46. Both are still up more than 17% for the week.

Rising inflation and the Fed’s reaction is still a big focus for investors with the impact of the conflict uncertain. Powell gave a second day of testimony before Congress Thursday, telling the Senate Banking Committee that Russia’s invasion of Ukraine will likely further magnify the high inflation that has engulfed the U.S. economy. At the same time, Powell said he is committed to doing whatever it will take to slow inflation, underscoring the central bank’s high-risk challenge in raising interest rates enough to stem inflation without tipping the economy into another recession.

Investors will get another update on the U.S. jobs market on Friday when the Labor Department releases its report for February.

“What we’re poised for is to really look hard at the jobs report tomorrow to see what the Fed needs to do and the state of the economy,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “Tomorrow’s average hourly earnings will provide a good read on inflation and whether consumers are able to keep up.”

ASX 200 expected to fall​

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower this morning.

On Wall Street, stocks fell and oil prices eased back Thursday after another bumpy day of trading on Wall Street as markets remained anxious about the broader impact of Russia’s invasion of Ukraine.

Major indexes veered up and down for much of the day before a late-day slide pushed them into the red. The S&P 500 shed a 0.7% gain to close 0.5% lower, while the Dow Jones Industrial Average fell 0.3%. The Nasdaq composite fell 1.6%, weighed down by technology stocks, which accounted for a big share of the market’s decline. The pullback left the indexes on pace for weekly losses..

 

[bigdog]

Trading on the Moscow exchange remained closed Friday and now for five days (refer MOEX Russia Index)

SEA OF RED FOR ALL INDEX'S TODAY

https://apnews.com/article/russia-u...cial-markets-9662ade67a95517211b3f9b396c4b33c

Stocks tumble as war overshadows ‘fantastic’ US jobs data

By STAN CHOE and ALEX VEIGA

Stocks around the world racked up more losses Friday, as even a gangbusters report on the U.S. jobs market can’t pull Wall Street’s focus off its worries about the war in Ukraine.

The S&P 500 fell 0.8% and posted its third weekly loss in the last four. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite ended 1.7% lower.

The declines for U.S. stock indexes followed sharper losses in Europe after a fire at the continent’s largest nuclear plant caused by shelling raised worries about what’s next. Markets worldwide have swung wildly over the last week on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation.

Treasury yields sank again as investors moved money into U.S. government bonds in search of safety, and a measure of nervousness on Wall Street climbed.

All the movements came despite a much stronger report on U.S. jobs than economists expected, one described as encouraging and even “fantastic.” Hiring by employers last month topped expectations by hundreds of thousands of workers, more people came back into the workforce after sitting on the sidelines and jobs numbers for prior months were revised higher.

On the inflation front, growth in wages for workers was slower last month than economists expected. While that’s discouraging for workers hoping to keep up with rising prices at the grocery store, for economists and investors, it means less risk the economy may be headed for what’s called a “wage-price spiral.” In such a reinforcing cycle, higher wages for workers would cause companies to raise their own prices even higher.

“The COVID recovery was in full bloom in the jobs report,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

“The tricky part is the future, not the past,” he said, as U.S. crude oil prices climbed above $115 per barrel amid worries about pressure on supplies because of the Ukrainian war. “Higher fuel and food costs can eat into consumers’ budgets. Those high costs can be a boon for oil producers and farmers, but not for everyone else.”

Such concerns helped drag stocks sharply lower in the early going, though the indexes pared their losses by the end of the day. The S&P 500 fell 34.62 points to 4,328.87, and is now down just under 10% from its record set early this year.

The Dow, which slid initially more than 500 points, ended down 179.86 points to 33,614.80. The Nasdaq fell 224.50 points to 13,313.44.

Smaller company stocks also fell. The Russell 2000 index dropped 31.51 points, or 1.6%, to 2,000.90.

In the benchmark S&P 500, more than 60% of stocks fell, with technology and financial companies weighing down the index the most. Apple fell 1.8% and JPMorgan Chase slid 2.8%. Among the gainers were utilities, health care stocks and companies that can benefit from higher oil prices. Occidental Petroleum vaulted 17.6% for the biggest gain in the index.

In Europe, whose economy is much more closely tied to the conflict because of its dependence on oil and natural gas from the region, the losses were sharper. France’s CAC 40 fell 5%, Germany’s DAX lost 4.4% and the FTSE 100 in London fell 3.5%.

Russian forces gained ground, shelling Europe’s largest nuclear power plant and causing a fire early Friday as they pressed their attack on a crucial energy-producing Ukrainian city. Authorities said the blaze was safely extinguished. U.S. Energy Secretary Jennifer Granholm tweeted that the Zaporizhzhia plant’s reactors were protected by robust containment structures and were being safely shut down.

Trading on the Moscow exchange, after briefly opening Monday, has remained closed throughout the week. The value of Russia’s ruble continues to hover below a penny after plunging roughly 30% since the middle of last week. It now takes roughly 104 rubles to get a dollar, up from fewer than 75 at the start of the year. The ruble has dropped as Western governments imposed sanctions that cut off much of Russia’s access to the global financial system.

The price of U.S. oil jumped 7.4% to $115.68 per barrel, the highest since August 2008. In July of that year, the price per barrel of U.S. crude climbed to an all-time high $145.29, pushing up the average price for gasoline above $4 a gallon.

Brent crude, the international standard, climbed 6.9% to $118.11 per barrel Friday.

“I don’t think the elevated commodity prices are behind us by any means,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “As energy prices continue to rise, eventually there could be some demand destruction that will result in some peaking in the price and possibly some decline in the price of oil.”

Amid the rush to safety, the yield on the 10-year Treasury fell to 1.74% from 1.84% late Thursday, a big move. It’s well below the 2% level it had reached last month, as expectations built for upcoming hikes in interest rates by the Federal Reserve to rein in inflation.

Stocks had rallied in the middle of the week after Federal Reserve Chair Jerome Powell said he favored a more modest increase to interest rates later this month than some investors had feared. The Fed is set to raise rates for the first time since 2018, though it has a tightrope walk ahead because too-high rates can choke the economy and cause a recession.

Powell warned Thursday that the fighting in Ukraine is likely to further magnify the high inflation troubling world economies. Russia is a key oil producer and prices have been rising as global supplies are threatened by the conflict.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to start the week on a positive note despite a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning.

On Friday, stocks around the world racked up more losses Friday, as even a gangbusters report on the U.S. jobs market can’t pull Wall Street’s focus off its worries about the war in Ukraine.

The S&P 500 fell 34.62 points to 4,328.87, and is now down just under 10% from its record set early this year.

The Dow, which slid initially more than 500 points, ended down 179.86 points to 33,614.80. The Nasdaq fell 224.50 points to 13,313.44.

The S&P 500 fell 0.8% and posted its third weekly loss in the last four. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite ended 1.7% lower.

 

[bigdog]

SEA OF RED FOR ALL INDEX'S TODAY AGAIN

The value of the Russian ruble continued to slide amid all the financial pressure, falling 12% to 0.7 cents.

https://apnews.com/article/russia-u...losi-economy-91fec47e5de9fa734fd0de9c402c2b99

Biggest stock slide on Wall Street since ’20 as oil surges

By STAN CHOE and ALEX VEIGA

Wall Street had its biggest drop in more than a year Monday as another leap for oil prices threatened to squeeze inflation’s grip on the global economy.

The S&P 500 fell 3%, its biggest decline in 16 months, after a barrel of U.S. oil surged to $130 overnight on the possibility the U.S. could bar imports from Russia. Stocks around the world also fell earlier in the day, taking their cue from oil’s movements.

The benchmark S&P 500 fell 122.78 points to 4,201.09. The Dow Jones Industrial Average fell 797.42 points, or 2.4%, to 32,817.38.

The Nasdaq composite slid 482.48 points, or 3.6%, to 12,830.96. The tech-heavy index is now 20.1% below its record set in November. Such a decline means the index is now in what Wall Street calls a bear market. The S&P 500 is down a more modest 12.4% from the peak it set in early January.

Gold and a measure of nervousness on Wall Street also rose, though not by quite as much as when oil prices hit their peak. The price of gold briefly rose above $2,000 an ounce before settling at $1,995.90, up 1.5%.

“This could be something that drags on for a while as the tensions in Ukraine persist, as oil prices remain elevated,” said Sam Stovall, chief investment strategist at CFRA. “The higher and longer oil prices stay elevated, the greater the eroding impact that they will have on economic growth.”

Oil prices have soared recently on worries that Russia’s invasion of Ukraine will upend already tight supplies. Russia is one of the world’s largest energy producers, and oil prices were already high before the attack because the global economy is demanding more fuel following its coronavirus-caused shutdown.

U.S. House Speaker Nancy Pelosi said in a letter to her colleagues on Sunday that “the House is currently exploring strong legislation” to further isolate Russia because of its attack on Ukraine. That could include a ban on imports of Russian oil and energy products, she said.

It’s a major step that the U.S. government has not yet taken, despite a long list of moves to punish Russia, as the White House has said it hopes to limit disruptions to oil markets. It wants to limit price jumps at the gasoline pump.

Reports also said U.S. officials may be considering easing sanctions against Venezuela. That potentially could free up more crude oil and ease concerns about reduced supplies from Russia.

A gallon of regular already costs an average of $4.065 across the country after breaching the $4 barrier on Sunday for the first time since 2008. A month ago, a gallon averaged $3.441, according to AAA.

A barrel of U.S. crude oil settled at $119.40 per barrel, up 3.2%, after earlier touching $130.50. Brent crude, the international standard, settled at $123.21 per barrel, up 4.3%, after earlier topping $139.

Meanwhile, smaller company stocks also fell sharply. The Russell 2000 index fell 49.57 points, or 2.5%, to 1,951.33.

Markets worldwide have swung wildly recently on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation. In the United States, prices for consumers jumped last month from their year-ago level at the fastest rate in four decades.

The conflict in Ukraine also threatens the food supply in some regions, including Europe, Africa and Asia, which rely on the vast, fertile farmlands of the Black Sea region, known as the “breadbasket of the world.”

The war puts extra pressure on central banks around the world, with the Federal Reserve on course to raise interest rates later this month for the first time since 2018. Higher rates slow the economy, which hopefully will help rein in high inflation. But if the Fed raises rates too high, it risks forcing the economy into a recession.

“Their reaction to geopolitics can’t really be measured, so there’s uncertainty around that,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Some investors have seen the war in Ukraine as potentially pushing the Fed to go easier on rate increases. Investors love low rates because they tend to boost prices for stocks and all kinds of markets.

But that may not necessarily be the case this time, Goldman Sachs economists wrote in a report. With prices for oil, wheat and other commodities potentially rising even more, the threat is higher for a sustained, high inflation to settle on the economy. That could flip the Fed’s traditional playbook.

“After several decades in which economic, financial, or political shocks invariably caused interest rates to fall, markets may have to re-learn that the opposite can also be true,” Goldman Sachs economist Jan Hatzius wrote.

Beyond sanctions brought on Russia by governments because of its invasion of Ukraine, companies are also levying their own punishments. The list of companies exiting Russia has grown to include Mastercard, Visa and American Express, as well as Netflix.

The value of the Russian ruble continued to slide amid all the financial pressure, falling 12% to 0.7 cents.

Treasury yields climbed. The 10-year yield rose to 1.78% from 1.72%.

ASX 200 futures pointing lower​

The Australian share market is expected to open the day lower this morning following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. This may not be a bad outcome considering the falls in New York!

Wall Street had its biggest drop in more than a year Monday as another leap for oil prices threatened to squeeze inflation’s grip on the global economy.

The S&P 500 fell 3%, its biggest decline in 16 months, after a barrel of U.S. oil surged to $130 overnight on the possibility the U.S. could bar imports from Russia. Stocks around the world also fell earlier in the day, taking their cue from oil’s movements.

The benchmark S&P 500 fell 122.78 points to 4,201.09. The Dow Jones Industrial Average fell 797.42 points, or 2.4%, to 32,817.38.