NEW YORK: Stocks gave up early gains and closed broadly lower on Friday, capping a turbulent week of trading on Wall Street, as uncertainty about the war in Ukraine and rising inflation continued to shake the markets.
The S&P 500 fell 1.3% after being up 0.7% in the opening round. The benchmark index posted a decline in its fourth week in the past five weeks, even as it rose mid-week and had its best day since the summer of 2020. Dow Jones Industrial Average The Nasdaq Composite dropped 0.7% and the Nasdaq Composite dropped 2.2%. Both also posted weekly losses.
European stocks outperformed, closing solidly higher. Oil prices jumped 3.1% higher after the first flip-flopping.
The moves are the latest swing for global markets, which have been shaken by dramatic hour-to-hour reversals in earlier weeks as investors struggle to anticipate whether Russia’s invasion of Ukraine will lead to losses in oil, wheat and the region. How will the prices of other goods produced increase? , This is increasing the risk that the economy could struggle under a toxic combination of persistently high inflation and stagnant growth. The Federal Reserve is expected to raise interest rates at its next week’s meeting.
All Star Charts investment strategist Willy Delevich said that despite some positive moves in stocks early Friday, uncertainty about the next developments in the conflict in Ukraine and what the Fed will do is likely to put investors in a selling mood.
“It remains a title-driven market,” Delwich said. “We’re in an environment where you get these exaggerated swings day in and day out, but you don’t make any progress.”
In the early Friday before Wall Street opened, the pendulum was swinging towards optimism. European stocks and US stock futures suddenly rose after Russian president’s comments Vladimir Putin That some analysts saw surprisingly optimistic. Putin The talks with Ukraine cited “some positive developments”, although he did not provide any details.
The S&P 500 opened with a gain of 0.7%, but it quickly went into losses after sinking more than economists expected after reading on sentiment among US consumers. Domestic expectations of high inflation to persist for the foreseeable future are rising, adding to unease. The S&P closed 55.21 points lower at 4,204.31.
The Dow fell 229.88 points to 32,944.19, while the Nasdaq fell 286.15 points to 12,843.81 after an early 0.8% gain. The Russell 2000 Index of Small Companies fell 32 points, or 1.6%, to 1,979.67.
More swings are likely for the markets as there remains so much uncertainty about war and inflation in Ukraine. President Joe Biden announced on Friday that the US, along with the European Union and the Group of Seven countries, would revoke “most favored nation” trade status for Russia. The move allows the imposition of duties on Russian imports.
Amidst all the uncertainty, american stock Crude oil prices are down more than 40% for 2022 so far, are down about 10% from their peak since the beginning of this year.
A barrel of US crude ended 3.1% higher at $109.33. It was briefly above $130 earlier this week. Prices fell as concerns about supply disruptions ebbed with hopes of peace and the prospect of countries outside Russia boosting their production. Internationally, Brent crude was up 3.1% at $112.67 a barrel.
Markets were already on edge even before Russia’s invasion, as central banks prepare to raise interest rates and remove support for the post-pandemic economy. The Federal Reserve and other central banks hope to seal the highest inflation in generations, although they can cause a recession if they raise rates too high or too quickly.
There is widespread hope for the Federal Reserve to raise its key short-term interest rate by a quarter of a percent next week, the first increase since 2018. The yield on the 10-year Treasury has climbed to nearly 2%. % returned in February, before concerns about the war in Ukraine sent it down from 1.70%.
Inflation is so high that politicians around the world know they can get in trouble because of it.
Brazil’s state-run oil company Petrobras on Friday raised the prices of fuel sold to its distributors by up to 25%, citing the war between Russia and Ukraine, as official data showed inflation accelerated in February Is.
The company, in a statement announcing the increase earlier in the day, said that for weeks it refrained from passing on costs, but persistently high oil prices forced adjustments to ensure supply to the Brazilian market.
In the US, a report Thursday showed consumer-level prices jumped 7.9% last month compared to the previous year, the highest inflation rate since 1982. This is likely to worsen in the near term due to post-war oil growth and all. The US and its allies imposed economic penalties on Russia.
Biden has said he wants to limit the economic pain for American families, but acknowledged that “defending liberties” carries a cost.
The S&P 500 fell 1.3% after being up 0.7% in the opening round. The benchmark index posted a decline in its fourth week in the past five weeks, even as it rose mid-week and had its best day since the summer of 2020. Dow Jones Industrial Average The Nasdaq Composite dropped 0.7% and the Nasdaq Composite dropped 2.2%. Both also posted weekly losses.
European stocks outperformed, closing solidly higher. Oil prices jumped 3.1% higher after the first flip-flopping.
The moves are the latest swing for global markets, which have been shaken by dramatic hour-to-hour reversals in earlier weeks as investors struggle to anticipate whether Russia’s invasion of Ukraine will lead to losses in oil, wheat and the region. How will the prices of other goods produced increase? , This is increasing the risk that the economy could struggle under a toxic combination of persistently high inflation and stagnant growth. The Federal Reserve is expected to raise interest rates at its next week’s meeting.
All Star Charts investment strategist Willy Delevich said that despite some positive moves in stocks early Friday, uncertainty about the next developments in the conflict in Ukraine and what the Fed will do is likely to put investors in a selling mood.
“It remains a title-driven market,” Delwich said. “We’re in an environment where you get these exaggerated swings day in and day out, but you don’t make any progress.”
In the early Friday before Wall Street opened, the pendulum was swinging towards optimism. European stocks and US stock futures suddenly rose after Russian president’s comments Vladimir Putin That some analysts saw surprisingly optimistic. Putin The talks with Ukraine cited “some positive developments”, although he did not provide any details.
The S&P 500 opened with a gain of 0.7%, but it quickly went into losses after sinking more than economists expected after reading on sentiment among US consumers. Domestic expectations of high inflation to persist for the foreseeable future are rising, adding to unease. The S&P closed 55.21 points lower at 4,204.31.
The Dow fell 229.88 points to 32,944.19, while the Nasdaq fell 286.15 points to 12,843.81 after an early 0.8% gain. The Russell 2000 Index of Small Companies fell 32 points, or 1.6%, to 1,979.67.
More swings are likely for the markets as there remains so much uncertainty about war and inflation in Ukraine. President Joe Biden announced on Friday that the US, along with the European Union and the Group of Seven countries, would revoke “most favored nation” trade status for Russia. The move allows the imposition of duties on Russian imports.
Amidst all the uncertainty, american stock Crude oil prices are down more than 40% for 2022 so far, are down about 10% from their peak since the beginning of this year.
A barrel of US crude ended 3.1% higher at $109.33. It was briefly above $130 earlier this week. Prices fell as concerns about supply disruptions ebbed with hopes of peace and the prospect of countries outside Russia boosting their production. Internationally, Brent crude was up 3.1% at $112.67 a barrel.
Markets were already on edge even before Russia’s invasion, as central banks prepare to raise interest rates and remove support for the post-pandemic economy. The Federal Reserve and other central banks hope to seal the highest inflation in generations, although they can cause a recession if they raise rates too high or too quickly.
There is widespread hope for the Federal Reserve to raise its key short-term interest rate by a quarter of a percent next week, the first increase since 2018. The yield on the 10-year Treasury has climbed to nearly 2%. % returned in February, before concerns about the war in Ukraine sent it down from 1.70%.
Inflation is so high that politicians around the world know they can get in trouble because of it.
Brazil’s state-run oil company Petrobras on Friday raised the prices of fuel sold to its distributors by up to 25%, citing the war between Russia and Ukraine, as official data showed inflation accelerated in February Is.
The company, in a statement announcing the increase earlier in the day, said that for weeks it refrained from passing on costs, but persistently high oil prices forced adjustments to ensure supply to the Brazilian market.
In the US, a report Thursday showed consumer-level prices jumped 7.9% last month compared to the previous year, the highest inflation rate since 1982. This is likely to worsen in the near term due to post-war oil growth and all. The US and its allies imposed economic penalties on Russia.
Biden has said he wants to limit the economic pain for American families, but acknowledged that “defending liberties” carries a cost.