At the opening of trading this morning, the Dow Jones index saw a modest 300-point bump, thanks in large part to some fresh gains accrued by companies like Boeing and Goldman Sachs. Both the Nasdaq and S&P 500 also saw bumps of their own of roughly 0.7%. However, while these increases are good, the unfortunate fact of the matter is that all of the stock indexes have been down overall for several weeks as the Russian invasion of Ukraine throws the international economy out of whack.
The Dow is currently on track for its fifth straight week of overall losses, while the S&P and Nasdaq are set for their second straight weeks.
“The S&P 500′s -12% decline from its peak suggests much of the froth has been taken out,” Savita Subramanian, equity and quant strategist at Bank of America Securities, told CNBC. “Stocks are largely pricing in the geopolitical shock, where the S&P 500 fell 9% from peak-to-trough since Russia-Ukraine headlines in early Feb, similar to a typical 7-8% fall in prior 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
As tensions remain high between Russia and Ukraine, many major global industries, ones that serve as benchmarks for financial value like metal and oil, have been impacted, which in turn has led to inflation and a drop in investor confidence.
Currently, the major turning point that investors are hoping for is a successful breakthrough in the ceasefire talks being held by Ukrainian and Russian officials. The Presidents of the two countries have said that positive turning points have been reached, though a potential end to the conflict has yet to be forecasted.
Image Source: CNN
