Tag: RussiaUkraine

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Stocks mixed following rally as investors monitor developments in Russia-Ukraine war

Stocks mixed following rally as investors monitor developments in Russia-Ukraine war

U.S. stocks were mixed Tuesday as investors monitored the war in Ukraine and braced for the possibility of new European sanctions against Russia.

The S&P 500 fell 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and the Dow Jones Industrial Average shed 70 points. The Nasdaq Composite was down roughly 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after rallying in the previous session, buoyed by a 27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} surge in Twitter (TWTR) that came after Tesla (TSLA) CEO Elon Musk revealed he purchased a 9.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in the social media company. Meanwhile, WTI crude oil edged 0.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher to $104 per barrel.

Musk is “speaking with his money by saying that Twitter is an undervalued platform,” MKM Partners’ Rohit Kulkarni told Yahoo Finance Live. “He sees there are things they can do to improve the service, and he’s definitely hinting at a more active role.”

Wedbush Securities analyst and Tesla bull Dan Ives also told Yahoo Finance he predicts Musk will have an active stake in the social media platform over the coming weeks or months, and that his recent snap up of shares was “just the appetizer.”

Separately, Musk’s own company, electric-vehicle giant Tesla, contributed to the gains that propelled a take-off for tech during Monday’s trading session. Shares of the EV carmaker jumped nearly 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after it reported vehicle delivery figures this weekend that came in higher than the same period last year.

Recession jitters were at bay on Monday after a closely-monitored portion of the Treasury yield curve inverted last week and spooked investors over the possibility of an imminent economic contraction. The phenomenon has a history of predicting a recession, with each of the last eight slowdowns dating back to 1969 preceded by a yield curve inversion. As of Monday morning, the yield on the benchmark 10-year note remained below that on the shorter-term 2-year note.

Still, worries about an economic downturn were not completely off the table for strategists.

Nomura Chief U.S. economist Robert Dent told Yahoo Finance Live he sees the potential for a “mild recession”

“We think that the cumulative risk of a recession between now and the end of 2024 stands at about 35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996},” he said. “A lot of that is just coming from what we think is going to be this very aggressive response from the Fed to actually get inflation under control and make sure the labor market actually cools down.”

Uncertainty around the crisis in Eastern Europe also continues to be a headwind for investors. JPMorgan CEO Jamie Dimon in his widely-read shareholder letter warned that the war in Ukraine is likely to meaningfully slow the U.S. and global economy. In the U.S. specifically, the bank estimates the U.S. economy will grow roughly 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, a downgrade from the institution’s initial GDP forecast of 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with larger cuts to forecasts on Russia and Europe’s economic outlooks.

“We do not know what its outcome ultimately will be, but the hostilities in Ukraine and the sanctions on Russia are already having a substantial economic impact,” said Dimon, adding that “many more” sanctions could be imposed on Russia and spur further unpredictability.

The European Union addressed apparent war crimes in Ukraine on Monday, indicating in a statement that officials would, “work on further sanctions against Russia” over the country’s targeted attacks on civilians. Some major European officials including Germany’s defense minister said they would support banning Russian natural gas — a move previously excluded from sanctions as Russia supplies about 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Europe’s gas energy.

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9:30 a.m. ET: Stocks dip as investors tune in for more possible sanctions against Russia

Here were the main moves in markets during Tuesday’s open:

  • S&P 500 (^GSPC): -12.78 (-0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,569.86

  • Dow (^DJI): -90.43 (-0.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,831.45

  • Nasdaq (^IXIC): +271.05 (+1.90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,532.55

  • Crude (CL=F): +$0.83 (+0.80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $104.11 a barrel

  • Gold (GC=F): +$5.50 (+0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,939.50 per ounce

  • 10-year Treasury (^TNX): +4.6 bps to yield 2.4580{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:50 a.m. ET: US stops Russian bond payments in move aimed to ramp up pressure on Moscow

The United States stopped the Russian government on Monday from paying holders of its sovereign debt more than $600 million from reserves held at U.S. banks in a bid to place pressure on Moscow.

Foreign currency reserves held by the Russian central bank at U.S. financial institutions were frozen on Feb. 24 as part of sanctions placed on Moscow for over its invasion of Ukraine.

The U.S. Treasury Department, however, had been permitting the Russian government to use funds to make coupon payments on dollar-denominated sovereign debt on a case-by-case basis.

On Monday, the U.S. government moved to cut off Moscow’s access to the frozen funds as a $552.4 million principal payment on a maturing bond came due.

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7:10 a.m. ET: Stock futures slip, oil rises following Monday’s tech rally

Here were the main moves in futures trading ahead of Tuesday’s open:

  • S&P 500 futures (ES=F): -10.50 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,567.25

  • Dow futures (YM=F): -83.00 points (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,746.00

  • Nasdaq futures (NQ=F): -37.75 points (-0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,126.50

  • Crude (CL=F): +$1.28 (+1.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $104.56 a barrel

  • Gold (GC=F): -$1.70 (-0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,932.30 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.4120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:12 p.m. ET Monday: Futures open little changed after stocks close higher

Here’s where markets were trading ahead of the overnight session on Monday:

  • S&P 500 futures (ES=F): -2.25 points (-0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,575.75

  • Dow futures (YM=F): -14.00 points (-0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,815.00

  • Nasdaq futures (NQ=F): -9.25 points (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,155.00

  • Crude (CL=F): +$0.43 (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.71 a barrel

  • Gold (GC=F): +$3.30 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,937.30 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 2.4120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Screens display the trading information for Twitter on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

Screens display the trading information for Twitter on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2022. REUTERS/Brendan McDermid

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

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Stocks climb as investors keep eyes on Fed, Russia-Ukraine crisis

Stocks climb as investors keep eyes on Fed, Russia-Ukraine crisis

U.S. stocks rose Thursday as investors continued to weigh a number of risks, including the Federal Reserve’s inflation flight and Russia’s war in Ukraine.

The S&P 500 climbed 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 4,472.77, while the Dow Jones Industrial Average inched up slightly by 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 34,407.87. The Nasdaq Composite gained 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 13,976.95.

In Russia, the Moscow Exchange partially reopened Thursday after a nearly monthlong shutdown to resume local trading in 33 securities, including oil giant Gazprom and Russian majority state-owned financial institution Sberbank. The Central Bank banned short-selling on stocks, however, and prohibited foreign investors from selling stocks. The benchmark MOEX index (IMOEX.ME) gained as much as 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading.

The White House in a statement early Thursday called the re-opening a “charade,” and noted the government was “artificially propping up the shares of companies that are trading.”

Investors continue to monitor developments on the conflict in Eastern Europe and the global response. President Joe Biden is set to convene with NATO allies in Brussels in a meeting that will set the stage for the announcement of more sanctions against Russia and greater humanitarian aid for Ukraine.

Wednesday marked two years since the S&P 500 bottomed in the 2020 global stock market crash after the World Health Organization moved to declare COVID-19 an official pandemic. Since then, the benchmark has registered its best two-year gain — more than 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the low — since 1937, according to data from Bespoke Investment Group.

Although the recovery makes the period the best two-year bull run in history in terms of strength, per Bespoke, U.S. stocks have had a rocky start to 2022 amid a backdrop of growing headwinds.

Historically high levels of inflation have tasked the Fed with reining in surging price levels without slowing economic growth. Stocks have oscillated between gains and losses as traders adjusted to hawkish comments earlier this week from Fed Chair Jerome Powell that indicated officials were prepared to lean into higher short-term interest rates “as needed” to mitigate fast-rising price levels. Powell’s comments come just a week after the central bank lifted its benchmark Federal Funds Rate by 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} (to a target range of 0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}).

“Policymakers were more hawkish than anticipated, exceeding estimates for interest rates and inflation, while reducing forecasts for economic growth,” Comerica Wealth Management Chief Investment Officer John Lynch said in a note.

Since 1958, the last nine interest rate tightening campaigns have seen the S&P 500 register less than average returns of roughly 3.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the one-year period following the initial rate hike, Lynch pointed out. However, the index has shown the propensity to climb for more than three years following the initial rate hike, with annualized returns of about 18.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

“The era of quantitative easing is seemingly over, and quantitative tightening has begun,” Lynch said. “Though the policy dynamics are shifting, we encourage investors to continue to focus on the long-term fundamentals supporting growth in the economy and corporate profits.”

Tightening also risks bringing the yield curve, the relationship between short- and long-term interest rates of fixed-income securities issued by the U.S. Treasury, closer to inverting. An inverted yield curve, when the short-term rates exceed the long-term rates, has been a signal of a pending economic recession in the past.

“With an economy in late cycle, fears of impending slowdown make defensive sectors relatively more attractive,” Commonwealth Financial Network global investment strategist Anu Gaggar said in commentary. “Thus, for an equity investor, it is imperative to pick your spots carefully.”

“While a paring back of equities may not be necessary, a defensive relative positioning going into a possible slowdown may help investors ride the wave,” he added.

Despite the Fed’s move to raise rates providing some temporary clarity to traders who for months have awaited steps forward on monetary tightening, geopolitical turmoil in Eastern Europe and its economic toll continue to muddy the bank’s path ahead in fighting inflation.

—

9:30 a.m. ET: Stocks open higher to extend string of recent swings in U.S. equities

Here were the main moves in markets at the start of trading Thursday:

  • S&P 500 (^GSPC): +20.28 (+0.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,476.52

  • Dow (^DJI): +100.32 (+0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,458.82

  • Nasdaq (^IXIC): +72.10 (+0.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,994.70

  • Crude (CL=F): -$0.78 (-0.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $114.15 a barrel

  • Gold (GC=F): +$11.00 (+0.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,948.30 per ounce

  • 10-year Treasury (^TNX): +6.4 bps to yield 2.3850{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

9:22 a.m. ET: New orders on US core capital goods fall in February

U.S.-made capital goods registered an unexpected drop February as shipments slowed, but demand for goods remained robust in a sign manufacturing is likely to continue expanding.

The Commerce Department reported new orders for non-defense capital goods excluding aircraft, a closely-watched measure for business expenditures, slipped 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} last month. The decline comes after core capital goods orders jumped 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in January.

Economists surveyed by Bloomberg anticipated core capital goods orders rising 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Even as spending is shifting back to services, demand for goods remained strong, keeping manufacturing growing. However, the sector, which accounts for 11.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the economy, continues to battle supply chain snafus.

—

9:02 a.m. ET: LME nickel trading spikes to hit 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Limit

Nickel jumped by the 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} exchange limit for a second straight day in London. The moves place bearish position holders in the spotlight just two weeks after the market was roiled by an historic short squeeze.

Futures contracts on the metal remained locked at the price limit on the London Metal Exchange early Thursday as the latest spike extends a period of volatility for the market.

In early March, prices soared over 250{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} across two trading sessions during the short squeeze centered on China’s Tsingshan Holding Group Co. before the market was suspended.

Meanwhile, hedge funds and other investors are weighing legal action against the London Metal Exchange over the recent debacle in the nickel market, according to a report by then Evening Standard.

A journalist poses while looking at a computer screen with the Bloomberg display showing a one-day view of the rise and fall in the value of the nickel, in London on March 8, 2022. - European equities attempted to rebound Tuesday from recent Ukraine-driven losses, while nickel prices rocketed to a record peak on Russian supply fears. The London Metal Exchange suspended trade in nickel after the base metal spiked to a record $101,365 per tonne as Russian supply concerns sparked sharp volatility. (Photo by Ben Stansall / AFP) (Photo by BEN STANSALL/AFP via Getty Images)

A journalist poses while looking at a computer screen with the Bloomberg display showing a one-day view of the rise and fall in the value of the nickel, in London on March 8, 2022. – European equities attempted to rebound Tuesday from recent Ukraine-driven losses, while nickel prices rocketed to a record peak on Russian supply fears. The London Metal Exchange suspended trade in nickel after the base metal spiked to a record $101,365 per tonne as Russian supply concerns sparked sharp volatility. (Photo by Ben Stansall / AFP) (Photo by BEN STANSALL/AFP via Getty Images)

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8:41 a.m. ET: New jobless claims fall to 187,000 in more than five-decade low

Applications for unemployment insurance fell sharply in the latest weekly data to set a more than 50-year low as the red-hot labor market showed no signs of cooling in the near-term.

The Labor Department latest weekly jobless claims report showed 187,000 claims were filed in the week ended March 19, coming in better than the 210,000 economists surveyed by Bloomberg had expected.

New jobless claims reached the lowest level since September 1969. Continuing claims also fell further to reach 1.35 million — the least since January 1970.

The labor market has remained a point of strength in the U.S. economy, with job openings still elevated but coming down from record levels as more workers rejoin the labor force from the sidelines.

—

7:14 a.m. ET: US equity futures jump as investors seek to recover Wednesday’s losses

Here were the main moves in futures markets ahead of the open Thursday:

  • S&P 500 futures (ES=F): +21.15 points (+0.48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,468.75

  • Dow futures (YM=F): +126.00 points (+0.37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,376.00

  • Nasdaq futures (NQ=F): +76.50 points (+0.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,523.50

  • Crude (CL=F): -$0.30 (-0.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $114.63 a barrel

  • Gold (GC=F): +$7.30 (+0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,944.60 per ounce

  • 10-year Treasury (^TNX): 0.00 bps to yield 2.3210{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:14 p.m. ET Wednesday: Stock futures open little changed as market seesaw continues

Here’s where the major stock index futures opened Wednesday evening:

  • S&P 500 futures (ES=F): +1.50 points (+0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,449.00

  • Dow futures (YM=F): +3.00 points (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,253.00

  • Nasdaq futures (NQ=F): +14.50 points (+0.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,461.50

  • Crude (CL=F): -$0.54 (-0.47{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $114.39 a barrel

  • Gold (GC=F): +$7.20 (+0.37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,944.50 per ounce

  • 10-year Treasury (^TNX): -5.2 bps to yield 2.3210{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Traders work at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022. U.S. stocks ended higher on Wednesday.The Dow rebounded 2.00 percent to 33,286.25, the S&P 500 rose 2.57 percent to 4,277.88, and the Nasdaq rallied 3.59 percent to 13,255.55. (Photo by Michael Nagle/Xinhua via Getty Images)

Traders work at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022. U.S. stocks ended higher on Wednesday.The Dow rebounded 2.00 percent to 33,286.25, the S&P 500 rose 2.57 percent to 4,277.88, and the Nasdaq rallied 3.59 percent to 13,255.55. (Photo by Michael Nagle/Xinhua via Getty Images)

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Dow falls 200 points, notches its fifth straight week of losses as Russia-Ukraine war drags on

Dow falls 200 points, notches its fifth straight week of losses as Russia-Ukraine war drags on

The Dow Jones Industrial Typical fell on Friday and notched its fifth straight week of losses as traders continue to be cautious about the war between Russia and Ukraine.

The Dow fell 229.88 details to 32,944.19, dragged down by losses in Nike and Apple. The S&P 500 fell 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 4,204.31. The technological innovation-concentrated Nasdaq Composite fell 2.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 12,843.81.

Russian President Vladimir Putin mentioned Friday that “particular good shifts” have occurred in the talks amongst the Kremlin and Ukraine. Nonetheless, a ceasefire has not been negotiated. Meanwhile, President Volodymyr Zelenskyy reportedly claimed Ukraine has reached a “strategic turning place” in its war with Russia.

U.S. President Joe Biden also known as for an conclude to Russia’s status as a desired trade companion, although Congress passed a funding bill that consists of $14 billion of Ukraine aid.

“Stocks are looking at an additional red week, as hope for a ceasefire, only to be let down, has added to the uncertainty,” stated Ryan Detrick of LPL Financial.

The Dow posted a 5-day getting rid of streak, as the Russia-Ukraine war proceeds to be an overhang on economical marketplaces. The S&P and Nasdaq fell for a 2nd straight 7 days.

For the 7 days, the Dow lost 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. In the meantime, the S&P fell 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, and the Nasdaq slid 3.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this week.

“Probably great news from favorable feedback relating to cease fireplace negotiations from Putin but buyers are doubtful how considerably pounds to put on this presented some of his former comments which turned out to be hollow,” reported Jim Paulsen, chief investment strategist for the Leuthold Group.

Nevertheless, Bank of America mentioned Friday that inventory declines associated to the war could have bottomed.

“The S&P 500’s -12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} drop from its peak indicates a great deal of the froth has been taken out,” claimed Savita Subramanian, equity and quant strategist at Financial institution of The united states Securities. “Shares are mostly pricing in the geopolitical shock, in which the S&P 500 fell 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from peak-to-trough given that Russia-Ukraine headlines in early Feb, equivalent to a typical 7-8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} drop in prior macro/geopolitical events.”

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The moves arrived amid a further day of better electricity charges. West Texas Intermediate crude, the U.S. benchmark, rose 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to around $109 for every barrel, while worldwide common Brent crude moved 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} larger to around $112. To be absolutely sure, crude costs are well off the highs noticed before in the 7 days.

Metals costs except for copper fell sharply. Palladium futures tumbled 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $2,803.50 an ounce. Agricultural commodity selling prices turned mixed and bond yields had been largely higher, nevertheless only a bit.

On the data front, the University of Michigan consumer sentiment index sunk to 59.7 in March, down from 62.8 in February, according to the report unveiled on Friday. This marks the weakest print considering that September 2011.

“Information that buyer self confidence sunk even lower this morning as residence fears about inflation intensify have ramped up worries about a severe U.S. economic slowdown or potentially even a recession,” added Paulsen.

Elsewhere, Rivian slipped 7.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} right after lacking estimates for the fourth quarter on the best and base strains, even though DocuSign sank 20.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} immediately after issuing weak guidance for the to start with quarter and fiscal calendar year.

Specific tech names dragged on the Nasdaq on Friday and ongoing their weak point considering the fact that Monday. Zoom Video fell 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, bringing its weekly losses to almost 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Meta Platforms fell 3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and lost 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the 7 days.

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Why ‘money will never be the same’ after Russia-Ukraine, and Bitcoin may benefit

Why ‘money will never be the same’ after Russia-Ukraine, and Bitcoin may benefit

As commodities rates spike and stocks swoon as a end result of Russia waging war from Ukraine, the financial technique could be changed in profound approaches, some analysts say.

At some position in the upcoming, electronic tokens may well revert to the inflation hedge and secure-haven from fiat turmoil, as envisioned when they ended up initially established. Regular harmless havens like gold, U.S. Treasuries and the U.S. dollar have surged in the existing environment of threat-aversion.

In a current investigation, Zoltan Pozsar, international head of brief-phrase interest system with Credit score Suisse, reported the crisis-level crunch could eventually gain Bitcoin just after the present market place bedlam passes.

“We are witnessing the delivery of Bretton Woods III – a new globe (monetary) buy centered all around commodity-dependent currencies in the East that will probably weaken the Eurodollar process and also lead to inflationary forces in the West,” Pozsar wrote in a investigation be aware.

Amid the unfolding crisis, Pozsar additional that the turmoil — partly encouraged by punitive Western sanctions versus Russia — is maximizing the “attract” of other forms of funds, the analyst pointed out.

“Bretton Woods II was crafted on inside income, and its foundations crumbled a week back when the G7 seized Russia’s Fx reserves,” he extra.

Electronic tokens and crypto-associated stocks have been mainly monitoring possibility appetite in equities. Crypto-linked names like Microstrategy (MSTR) (-7.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), Coinbase (COIN) (-17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) and Marathon (MARA) (-14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) keep on to sell off relative to BTC.

Changing just down below $39,000 on Tuesday, Bitcoin (BTC-USD) is down 13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} around the past week, but traded flat on the day. The international current market cap for cryptocurrencies lose a staggering $4.3 billion right away, and sits at $1.74 trillion in accordance to asset analysis firm, Fundstrat.

The 2nd greatest cryptocurrency, ether (ETH-USD) has marketed off 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the identical interval, down virtually 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} reduction around the previous 7 days. It is 24-hour set/call ratio has climbed to an 5-thirty day period large, in accordance to Coinbase Skew, which alerts bearish traders are emboldened.

Continue to, BTC is faring much better than most other electronic cash, even however the narrative of it staying a safe-haven has been put to relaxation by modern price tag action. In the lengthy run, it may well arrive out superior than most, Pozsar argued, specified that punitive sanctions have built a additional decentralized economic transaction procedure much more captivating.

“This disaster is not like just about anything we have observed since President Nixon took the U.S. dollar off gold in 1971 – the stop of the era of commodity-based mostly funds,” the economist explained. And when the Russia-Ukraine conflict ends, the analyst called for a “much weaker” U.S. greenback — and a much better Chinese renminbi — supported by a basket of commodities.

“‘Money’ will never ever be the identical yet again,” Pozsar wrote, “and Bitcoin (if it nevertheless exists then) will in all probability gain from all this.”

‘Multipolar menu’

Marko Papic, chief strategist at alternative asset system Clocktower Team, pointed out in a analysis observe that predictions of U.S. greenback dropping its perch as the world’s reserve forex as fallout from Russian sanctions were being “overstated.”

Even so, he indicated a more polarized financial order across entire world commerce “will most likely have a multipolar Forex reserve menu,” this means the worth of currencies will improve.

But Jon Wolfenbarger, CEO and Founder of private financial commitment research system, Bull and Bear Earnings, told Yahoo Finance that “Bitcoin would likely benefit from a weaker U.S. dollar and a much better commodities-backed Chinese currency,” as buyers sought out alternate options.

If sanctions from aggressor Russian banking companies build a significant adequate commodities provide shock, western investors may possibly come to a decision to go their belongings from the security of the U.S. greenback to some alternate retail outlet-of-price, he argued.

“Assuming governments do not ban it, Bitcoin is a excellent choice with fewer political hazards,” Wolfenbarger included.

David Hollerith covers cryptocurrency for Yahoo Finance. Adhere to him @dshollers.

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Why the stock market refuses to plunge on Russia-Ukraine crisis

Why the stock market refuses to plunge on Russia-Ukraine crisis

All in all, the inventory industry is hanging difficult in what has been a turbulent two weeks for humanity.

The Dow Jones Industrial Ordinary is up more than 600 factors on Wednesday as of this writing. Equally the S&P 500 and Nasdaq Composite are nearing gains of 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. All three important indexes are nicely off the lows strike by the close of investing on Feb. 23, a mere several hours prior to Russia invaded Ukraine.

Just about every member of the FAANG [Facebook/Meta, Apple, Amazon, Netflix, Google/Alphabet] cohort has attained in the past five buying and selling days as luck would have it, paced by a practically 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} enhance in Alphabet.

And imagine us, there are many items trying incredibly really hard to provide the major stock indexes to their collective knees.

Oil charges ripped by $110 a barrel on Wednesday as the war involving Russia and Ukraine intensified. Western firm following Western organization are expressing see you later to Russia in gentle of its motion. A person of the newest names is credit score card big American Convey.

These steps by the West has some Wall Road strategists telling Yahoo Finance Reside the Russian economic climate is poised to nosedive into a deep, protracted economic downturn.

In the meantime top emerging industry buyers such as Mark Mobius tell us Russia may perhaps be uninvestable for much more than a year, and placing funds to perform in other emerging markets like China and Brazil are not with out heightened hazard.

And as oil price ranges spike — and it can be considered a spike (primary to a likely super-spike as Goldman Sachs main commodities strategist Jeff Currie defined to us) — fuel charges in America continue to keep on climbing, rising and rising additional. The ordinary price tag of petrol in California is approaching $5 a gallon, the greatest in the state.

The additional money gas inflation will siphon out of the pockets of individuals is serious. Which is money that could be expended at Macy’s for a new pair of denims. Which is more cash it will charge a FedEx to ship a offer due to better fuel expenses. And what is FedEx possible to do about it? Jack up selling prices further on the conquer-up wallets of buyers.

Regardless of the litany of challenges — which obviously could hammer corporate revenue in 2022 — there is the excellent ole’ inventory marketplace hanging tough. Why is that the case you check with? I am happy you did question.

Market execs say that traders are searching outside of all the headline chaos and stay fixated on the king daddy of aspects that are likely to upset stock price valuations.

Bigger curiosity rates from the Federal Reserve. Odd stuff, appropriate?

“One particular of the causes why the stock current market has held up so effectively is perception that the Fed will not be as intense in their new tightening plan as some have been thinking they would be ahead of the disaster in eastern Europe erupted. So if we get some favourable reinforcement on this issue, the stock current market could keep up (or even bounce) for a though,” explained Miller Tabak main marketplaces strategist Matt Maley.

Maley is on the mark in this article, judging by the good response in inventory rates to contemporary commentary from Fed chief Jerome Powell in his testimony to lawmakers today.

“The bottom line is we will commence but we will move forward carefully as we understand a lot more about the implications of the Ukraine war,” Powell explained to the Household Monetary Solutions Committee.

Yahoo Finance Fed correspondent Brian Cheung points out Powell stated he supports escalating limited-phrase desire prices by .25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the upcoming coverage-setting conference on March 15 and 16.

Coming into March, most sector specialists were being bracing for a 50-basis fee hike at the March assembly adopted by eight to 10 much more improves in fees into yr-stop. But Powell has officially reset the narrative, and buyers really like it.

So there you have it, folks.

Inflation is running rampant. Income margins are beneath attack. Vladimir Putin is participating in terror to the planet. And nonetheless, there are markets fixated on price hike responses from a single of the most potent people in the economical market in Powell.

No one claimed investing produced perception. It will not make feeling now, and it will unlikely make perception tomorrow. Rest certain, nonetheless, that at some position quickly markets will transfer outside of fee hike fears and refocus on geopolitical and macroeconomic challenges.

When that transpires, people aforementioned Feb. 23 lows for shares could be in participate in. You have been warned.

Brian Sozzi is an editor-at-substantial and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Stock futures dip amid Russia-Ukraine, rising oil prices

Stock futures dip amid Russia-Ukraine, rising oil prices

Stock futures pointed to a slightly lower open Thursday morning after rallying a day earlier, as concerns over rising energy prices and Russia’s ongoing war in Ukraine weighing on risk assets.

Contracts on the S&P 500 edged lower. The index ended higher by 1.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday afternoon as each of the Dow and Nasdaq also rallied. The move higher came following affirmation from Federal Reserve Chair Jerome Powell that the central bank will take a measured approach to raising interest rates amid geopolitical uncertainty helped to momentarily appease volatile markets.

Namely, investor focus turned to Powell’s testimony before the House Financial Services Committee on Wednesday, during which the Fed chief said explicitly that he would back a quarter-point interest rate hike following the Fed’s March meeting later this month. Powell left open the possibility that the Fed would raise interest rates and tighten more aggressively later this year, however, given the current, persistent inflationary pressures rippling across an otherwise solid U.S. economy.

“By expressing that 25 basis points is the likely path of the Fed, that takes away some of the uncertainty. And there was a big debate in the markets about whether it would be 25 basis points or 50 basis points out of the gate,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, told Yahoo Finance Live on Wednesday.

“Clearly, [with] the conflict in Ukraine and the sanctions potentially dampening global economic growth, that makes it more likely that the Fed would want to go a little more slowly,” Zaccarelli added. “But on the other hand, inflation is rising … It’s our concern that they will have to go for longer and higher than people are currently expecting.”

Powell is set to deliver the second day of his semi-annual address before the Senate Banking Committee on Wednesday.

And a continued melt higher in energy prices has further stoked inflation concerns. U.S. crude oil prices jumped above $116 per barrel on Wednesday to reach a more than decade high, as investors monitored the potential energy-market fallout from Russia’s invasion of Ukraine. And meanwhile Brent crude — the international standard — rocketed further to near $120 per barrel.

And other data on the U.S. economy have pointed to a tight labor market, suggesting rising wages will also remain an ongoing contributor to inflation. ADP said Wednesday that U.S. private-sector payrolls grew by 475,000 in February, or well above the 375,000 jobs expected, following a jump of more than half a million jobs in January. The Labor Department’s official February jobs is due for release Friday morning, and is expected to show a 5.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual increase in average hourly earnings.

“Wage growth right now is too high for comfort, no matter how optimistic you might be about the outlook for productivity growth, and the Fed has to signal to the private sector that it is serious about preventing a wage/price spiral,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, said in a note Wednesday. “QT [Quantitative tightening] remains under discussion, with no announcement imminent, but we think that every voting FOMC member right now expects to vote for a hike this month.”

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7:29 a.m. ET Thursday: Stock futures hold overnight losses

Here’s where markets were trading Thursday morning:

  • S&P 500 futures (ES=F): -2.5 points (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,379.25

  • Dow futures (YM=F): -7 points (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 33,842.00

  • Nasdaq futures (NQ=F): -26 points (-0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,213.25

  • Crude (CL=F): +$1.72 (+1.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $112.32 a barrel

  • Gold (GC=F): +$15.70 (+0.82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,938.00 per ounce

  • 10-year Treasury (^TNX): -0.7 bps to yield 1.858{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:13 p.m. ET Wednesday: Stock futures dip

Here were the main moves in markets Wednesday evening:

  • S&P 500 futures (ES=F): -6.25 points (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,375.50

  • Dow futures (YM=F): -39 points (-0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 33,810.00

  • Nasdaq futures (NQ=F): -34.75 points (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,204.50

NEW YORK, NEW YORK - FEBRUARY 28: Traders work on the floor of the New York Stock Exchange (NYSE) after New York City Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Stocks plunged over 400 points as investors continue to weigh the situation in Ukraine as Russia continues its invasion of the nation. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – FEBRUARY 28: Traders work on the floor of the New York Stock Exchange (NYSE) after New York City Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Stocks plunged over 400 points as investors continue to weigh the situation in Ukraine as Russia continues its invasion of the nation. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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