New York (AP) — Relief flowed to Wall Street on Friday, despite ongoing deadly attacks in Ukraine. Stocks have risen, oil has fallen, and investors have turned away from gold and other traditional shelters when fears are high.
The S & P 500 rose 1.7% in the afternoon trading and the benchmark index turned from a loss of 2.6% to a rise of 1.5% on Thursday’s wild follow-up. Stock prices are skyrocketing and the amount is uncertain. Russian invasion It pushes up inflation, especially oil and natural gas prices, and drags the world economy.
Such large fluctuations are highly uncertain not only in Ukraine but also in interest rates and can last for hours or weeks in the future. The The Federal Reserve is involved in delicate dance Interest rates need to be raised enough to curb high inflation, but not enough to cause a recession.
At least on Friday, I was feeling calm. Wall Street’s horror measure of how traders are worried about future fluctuations in stock prices has fallen by 6.6%. Gold fell 2% after a few weeks of rising gold due to concerns over Russia and Ukraine. Treasury yields are relatively stable, indicating that investors were not fighting for security as they were shortly after the Russian invasion.
Mark Hackett, Head of Investment Research at Nationwide, said:
The report that Russia is ready to send a delegation to Belarus for a meeting with Ukrainian authorities has helped somewhat. Meanwhile, the U.S. government reports Inflation last month It was still high, but it was almost in line with the expectations of economists. It also showed a major driver of the US economy, consumer spending, which was stronger than economists expected.
“The Federal Reserve and inflation, which have lost much focus on Russia, is the fact that the economy is in a fairly strong position,” Hackett said.
Brian Jacobsen, senior investment strategist at Allspring Global Investments, said economic reports could be sufficient to convince the Federal Reserve to postpone short-term interest rate hikes next month to twice the normal rate. Stated. This is what some federal officials have suggested, and investors are usually afraid because higher interest rates put downward pressure on all types of investments. Regardless of size, it will be the first rate hike since 2018.
However, a new calm in the global financial markets is due to Russia’s unleashing air strikes on cities and military bases, sending troops and tanks from three sides, and then pressing the suburbs of the capital to invade Ukraine on Friday. did. The largest ground conflict in Europe since World War II.
The Dow Jones Industrial Average rose 686 points (2.1%) to 33,918 at 3:12 EST. The Nasdaq Composite rose 1% after fluctuating between modest profits and losses. A day ago, before suddenly roaring, it temporarily fell by more than 20% to a record high.
All prices, from stocks to Bitcoin, fluctuate sharply due to uncertainties in Russia and Ukraine, but perhaps the brightest spotlights on the market are in oil and natural gas. Russia is one of the world’s largest producers of both oil and gasAnd European consumers are particularly dependent on it.
Oil prices fell the day after they temporarily exceeded $ 100 a barrel on both sides of the Atlantic, amid concerns that conflict and future sanctions could disrupt supply. Benchmark US crude fell 1.3% to $ 91.59 a barrel. Brent crude, the international standard, was down 1.2% to $ 97.93.
When he announced sanctions against Russia, which he said was harsh on Thursday, President Joe Biden said, “I will do everything with my power to limit the pain that Americans feel with gasoline pumps.”That led to some relief that there were sanctions Was not so seriousAnd falling oil prices helped increase inventories.
“The recovery of the world economy is still underway, so we will do nothing to cause unintended disruption to the flow of energy,” said Dareep Singh, deputy director of the National Economic Council, Thursday.
Stock prices also rose in much of Europe and Asia on Friday, recovering some of the sharp losses immediately after Russia’s invasion. The FTSE 100 in London was up 3.9%, the CAC 40 in France was up 3.6% and the DAX in Germany was up 3.7%.
Swiss Quart Bank SA Ipek Ozkardeskaya said the crisis could slow the central bank’s move to cool inflation by raising interest rates and unleashing other support for a pandemic-stricken economy, market officials said. You may be betting.
“But in reality, it’s about volatility and high volatility due to the high voltage environment. It’s impossible to determine in which direction the market will move in the next five minutes,” Ozkardeskaya said in a comment. ..
Contributed by Yuri Kageyama, an AP business writer. Veiga reported from Los Angeles.
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Increase inventory and fear on Wall Street despite Ukrainian invasion | Associated Press
Source link Increase inventory and fear on Wall Street despite Ukrainian invasion | Associated Press