The stock market gave up earlier gains on Wednesday, a day after the S&P 500 index entered correction territory, as investors monitor the latest developments regarding the conflict in Ukraine.
It fell 23 points, or 0.1%, after the index was firmly in the green to start the trading day. The
It is down 0.2% after the index fell by 1% in the previous session. Entering the correction area For the first time in two years. The
It fell 0.4%.
On Tuesday, markets were sold off – all three indexes fell more than 1% – on news of Russia sending troops to Ukraine, prompting fears that the US would be forced to impose heavy sanctions on Russian oil, thus restricting global supplies and sending the commodity’s price higher. This would cause more economic inflation, which has really hurt the consumer lately. But only President Joe Biden Minor penalties announced On Russian banks and elite individuals.
Wednesday, it eased those fear-based moves. Sure, stocks were going down, but not as much. Additionally, money has been moving away from the safe 10-year Treasury, with the bond’s price and yield down 1.96% from Tuesday’s close of 1.94%.
Regarding the situation in Russia, “a lot has been priced [in]Mike Wilson, chief US equity strategist at Morgan Stanley wrote:
West Texas Intermediate crude fell 0.7% to just over $91 a barrel and was still below a multi-year high of just over $95, which it touched early Tuesday morning.
Looking to the future, any further Russian aggression will face harsher sanctions from the US Biden as he said in his briefing on Tuesday, leaving sanctions on oil on the table. So The stock market may remain vulnerable to downward tremors.
Lauren Goodwin, an economist and portfolio strategist at New York Life Investments, noted the risks related to Russia, which still linger. “If Russia goes further into Ukraine, the conflict may be longer and the West’s reaction may be more severe,” Goodwin said. “Sanctions could be harsher… Rising commodity prices and slowing growth could have a major impact on the global economy.”
Here’s the key to the moment: The S&P 500 is still trading above its lowest point for the year. As low as 4,222 hit in late January, investors scrambled to buy affected stocks, sending the index up quickly. If the index falls below this level, it may indicate a weakening of confidence in the economic outlook, but if it remains higher, this is a positive sign.
“For many merchants (and machines), it is [4,222] represents a clear demarcation line,” wrote Frank Cappelaere, chief market technician at Instinet. “Above it: a contract. Beneath it: Empty any leftover collectibles.”
The index rose 0.1%, Hong Kong
It ended the day with a gain of 0.6%.
In the field of digital assets,
The leading cryptocurrency, up 4% in the past 24 hours to just under $39,000, according to Data from CoinDesk. The risk-sensitive investment sold off on Tuesday, reaching a low of around $36,500.
Here are five stocks on the move on Wednesday:
Palo Alto Networks
(Indicator: PANW) Its stock rose 3.2% after the security software company reported strong demand for its products and Financial data for the fourth quarter beat expectations.
(TWTR) stock fell 0.1% after the company announced that it would sell $1 billion in high-yield debt.
CPRI stock fell 1% after the company’s announcement he won $2.22 per share, beating estimates of $1.69 per share, on sales of $1.6 billion, beating expectations of $1.47 billion.
(TJX) stock fell 0.5% after the company’s announcement he won 78 cents a share, missing estimates of 91 cents a share, on sales of $13.8 billion, below expectations of $14.2 billion.
(MRO) (MRO) stock is up 0.8% after being upgraded to overweight from Neutral at Piper Sandler.
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