US stocks fluctuated on Friday and oil prices rose, extending the choppy extension to markets as investors assessed developments from The war in Ukraine.
The Dow Jones Industrial Average rose 49 points, or 0.2%, in early afternoon trade. The S&P 500 is down 0.4%, while the Nasdaq Composite is down 1.1%. Stock futures rose after the Russian president
Russian President Vladimir Putin
He said in televised statements that there were positive developments during the talks with Ukraine, even with the Russian forces Continue pound Ukrainian cities.
Major indicators are on track to close the week lower, as volatility prevails and Inflation fears escalated. The Dow Jones Industrial Average recently fell 1.2% this week, its fifth consecutive weekly loss. The S&P 500 and Nasdaq composite indices are on track for a loss of 2% and 2.5%, respectively for the week, which would cover the fourth weekly loss in the past five weeks for both indices.
Some investors and traders said that big swings are now common for major stock indices, but even by those standards the jumps and falls this week have been extreme. On Monday, oil prices rose Stocks fellThe S&P 500 posted its worst day in over a year. Two days later, the benchmark index jumped 2.6 percent, its biggest gain since 2020.
Next week could bring more volatility. The Federal Reserve meets next Tuesday and Wednesday to vote on Whether the base rate will be raised And with you. Fed fund futures contracts, which traders use to bet on interest rate movements, have a 96% probability of a 0.25 percentage point rate increase at next week’s meeting. A month ago, Fed fund futures showed a 50% chance of a 0.50 percentage point rate increase.
Among the worst performers this week: technology companies. The high-tech Nasdaq Composite entered bear market territory on Monday, which is defined as down 20% from its recent high. Traders said rising inflation pressured technology stocks.
“Earnings growth expectations are slowing dramatically, while inflation is rampant. At the same time, inflation is rampant,” said Dan Morgan, senior portfolio manager at Synovus Trust Co., which owns shares in several tech heavyweights. On the growth of large profits severely affected.
On Friday, Brent crude futures, the international oil standard, rose 2.7% to $112.28, after paring some gains after Putin’s comments. Oil prices are hovering near their highest level in years, although they have eased in recent days. Earlier this week, the United Arab Emirates said it would put pressure on the Organization of the Petroleum Exporting Countries (OPEC). To pump more oilhelping to allay some concerns about the supply crisis.
In New York trading, shares
It fell by 20% after the release of the software maker Lighter than expected instructions.
In Europe, the Stoxx Europe 600 Continental Index added 1%, posting weekly gains. Germany’s DAX climbed 1.6%. Shares of the Italian aerospace company
Sportswear company Adidas was among the top gainers in Europe, jumping 11% and 3.9%, respectively. Pearson jumped 18% after Apollo Global Management said it was evaluating A potential cash offer for a textbook publisher.
The Russian stock market remained closed on Friday. In foreign trade, the ruble rose against the dollar to trade at around 114 rubles per dollar. evaluation ruble price It has become difficult since Russia imposed measures to stop the sale of currency etc. Western banks shun Russian assets.
Investors are watching the struggle closely. Meanwhile, the rapidly changing sanctions imposed by the West on Russia have affected traders’ ability to predict how trade and supply chains will be disrupted. President Biden said Friday that the United States will join key allies and the European Union in moving to The abolition of normal trade relations with Russia.
Investors are increasingly concerned that the war will hamper global economic growth and maintain inflation At multi-decade heights. Thursday’s US Consumer Price Index data showed that inflation last month was largely driven by Energy price increase. The data was not taken into account for March, when oil prices jumped.
The volatility prompted investors to scramble to rebalance portfolios. In recent weeks, investors have moved in and out of safer assets as news reports about the conflict have changed rapidly. For example, the ICE US Dollar Index, which measures the US currency against a basket of other currencies, lost 0.1% after Mr. Putin’s comments, erasing the gains made earlier in the day.
Meanwhile, the yield on the benchmark 10-year Treasury also reversed course, rising to 2.015% on Friday from 2.008% on Thursday. Yields rise when bond prices fall.
In Asia, stock markets were mixed, with Japan’s Nikkei 225 down 2.1%, while Hong Kong’s Hang Seng fell 1.6% to close at its lowest level since July 2016. In contrast, the Shanghai Composite added 0.4%. The three indices closed lower on a weekly basis.
This came after the Securities and Exchange Commission Temporarily named On Thursday, five Chinese companies listed in New York, including Yum China Holdings and BeiGene, as companies whose audit worksheets cannot be examined by US regulators. This led to a sharp sell-off in US-listed Chinese stocks, with the Nasdaq China Gold Dragon down 10%.
Alexander Osipovich contributed to this article.
Write to Caitlin McCabe at [email protected] and Corrie Driebusch at [email protected]
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