Today, the Dow Jones index started with a small rise of 300 points, mainly due to gains from companies like Boeing and Goldman Sachs. Nasdaq and S&P 500 also increased by about 0.7%. Despite these gains, all stock indexes have been on a downward trend for weeks due to the impact of the Russian invasion of Ukraine on the global economy.
The Dow is heading towards its fifth consecutive week of losses, while the S&P and Nasdaq are looking at their second week of declines.
Savita Subramanian, an equity and quant strategist at Bank of America Securities, mentioned to CNBC, “The S&P 500’s -12% decline from its peak indicates that much of the speculative activity has been reduced. Stock prices are reflecting the geopolitical tensions, with the S&P 500 falling 9% since the Russia-Ukraine crisis started in early February, which is similar to previous market reactions to macro/geopolitical events.”
U.S. stocks closed lower Thursday, as investors weighed surging U.S. consumer price inflation and stalled Russia-Ukraine negotiations. The Dow Jones Industrial Average closed down 0.3%. https://t.co/P0f2j7Ad91 pic.twitter.com/E6vJqeO9eq
— MarketWatch (@MarketWatch) March 10, 2022
Due to the ongoing tensions between Russia and Ukraine, key global industries such as metals and oil, which are fundamental indicators of financial health, have been affected, resulting in inflation and a decrease in investor confidence.
The pivotal moment that investors are eagerly awaiting is a successful breakthrough in the ceasefire negotiations between Ukrainian and Russian authorities. Both Presidents have signaled progress in the talks, but a definitive resolution to the conflict is yet to be anticipated.
Image Source: CNN
