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Stocks fall, oil soars amid Russia’s war in Ukraine

Stocks fall, oil soars amid Russia’s war in Ukraine

Stocks extended declines on Monday and oil prices soared as investors nervously considered the potential for even higher inflation and greater global economic damage from Russia’s war in Ukraine and sanctions that have ensued.

The S&P 500 closed down nearly 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 4,200.89, its worst day in more than a year, while the Dow fell 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 32,813.56. The Nasdaq Composite dropped 3.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at 12,380.96 clocking in its worst day in more than a month, and formally entered a bear market after dropping more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from its recent record high. The German DAX index (DAX) as well as the STOXX 50 (FEZ) also each sank to drop into bear markets. Traders piled into safe haven assets, and gold prices (GC=F) briefly jumped above $2,000 per ounce for the first time since September 2020. U.S. Treasury yields advanced.

In energy markets, Brent crude oil prices (BZ=F), the international standard, soared to as much as $137 per barrel, building on gains over the past several weeks. U.S. West Texas intermediate crude oil (CL=F), likewise, rose to as much as $130.50 a barrel.

The jump in energy prices came as the White House and European nations weighed an import ban on Russian crude oil in a further punitive move for the country’s invasion of Ukraine. Secretary of State Antony Blinken told CNN on Sunday that the Biden Administration was “now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil,” while ensuring global markets remain sufficiently supplied.

The U.S. receives only a small portion of energy products from Russia, with just about 7.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of total petroleum imports including crude oil coming from the country in 2021, according to the Energy Information Administration. However, such a ban could more negatively impact European countries that have been more reliant on Russian crude oil as well as natural gas for energy. Prices for metals used in fuel cell batteries and other clean energy products including palladium and nickel also spiked on Monday as traders eyed an accelerated move toward renewable alternatives.

“Russia’s invasion of Ukraine—and the Western response to it—will exacerbate the supply-demand imbalance that lies at the heart of the global inflation surge,” Goldman Sachs economist Jan Hatzius wrote in a note Sunday. “Reducing trade with a current account surplus country via sanctions and boycotts means that the rest of the world needs to produce a larger share of what it consumes.”

Hatzius added that “the potential shift is fairly small at an aggregate level,” given Russia comprises less than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of the global goods trade and gross domestic product. But in oil, Russia supplies 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of global consumption, and 17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of natural gas — including as much as 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Western European consumption.

“If Western countries buy less Russian oil, China and India could in principle buy more Russian oil and correspondingly less Saudi and other oil, which can then flow to the West,” Hatzius added. “But this ‘rearrangement of the deck chairs’ isn’t perfect, not only because of increased transport costs and other technical frictions but also because China and India may be reluctant to increase their imports and corresponding payments sharply at a time when Russia is becoming a global pariah.”

The uncertainty over global trade and supplies of key goods has further stoked fears over a further surge in inflation. Later this week, the Bureau of Labor Statistics is set to release its February Consumer Price Index, which economists expect will show a 7.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annual rise for the largest jump since 1982. And given the latest set of commodity price increases this month, a further rise is also possible.

“We had thought that February was going to mark the peak,” Michelle Girard, NatWest co-head of global economics, told Yahoo Finance Live on Friday. “However, with the rise in energy prices that we’re seeing, I don’t think we can any longer assume that’s going to be the case. Certainly, with respect to the headline numbers, I think, it’s likely that we’ll continue to see upward pressure.”

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4:00 p.m. ET: Stocks end at session lows

Here were the main moves in markets as of 4:00 p.m. ET:

  • S&P 500 (^GSPC): -127.98 (-2.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,200.89

  • Dow (^DJI): -801.24 (-2.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,813.56

  • Nasdaq (^IXIC): -482.48 (-3.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 12,830.96

  • Crude (CL=F): +$4.44 (+3.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $120.12 a barrel

  • Gold (GC=F): +$34.00 (+1.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $2,000.60 per ounce

  • 10-year Treasury (^TNX): +2.7 bps to yield 1.7510{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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2:26 p.m. ET: Shares of U.S.-listed Chinese stocks slump amid risk-off move

Shares of major Chinese companies listed in the U.S. sank on Monday amid a broader risk-off tone across global equity markets, and as investors eyed the country’s rising COVID-19 cases.

The Nasdaq Golden Dragon China Index (^HXC), which tracks a basket of major U.S.-listed Chinese stocks, dropped more than 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Monday afternoon to set a record low in data spanning back to early 2017. Major components including Baidu (BIDU) and Chinese electric-vehicle maker XPeng (XPEV) also fell more than 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} each intraday.

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12:26 p.m. ET: Stocks extend declines, indexes drop more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

The three major equity indexes dropped more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during afternoon trading, building on earlier losses. Here’s where markets were trading after 12 p.m. ET:

  • S&P 500 (^GSPC): -97.90 (-2.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,230.97

  • Dow (^DJI): -675.37 (-2.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 32,939.43

  • Nasdaq (^IXIC): -300.53 (-2.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,012.09

  • Crude (CL=F): +$2.28 (+1.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $117.96 a barrel

  • Gold (GC=F): +$20.30 (+1.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,986.90 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 1.736{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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10:26 a.m. ET: ‘Look for these dips to offer opportunities that are shorter-term in nature’: Strategist

With major equity indices continuing to trend lower this year, at least one strategist suggested investors shift from pursuing the buy-and-hold strategy that paid off during the pandemic to a more tactical approach.

“What we saw late last year was a pretty significant loss of long-term upside momentum developing, and of course that’s manifested itself in a pretty sizable corrective phase at this point in thee major indices,” Katie Stockton, Fairlead Strategies founder, told Yahoo Finance Live on Monday. “So that loss of upside momentum suggests that the market has moved into a trading range perhaps, and with a trading range environment, when you just buy and hold long-term, it doesn’t tend to pay off.”

“However, if you can be more short to intermediate term in your focus, with a time frame of perhaps a couple months maybe, that would be a little bit of a safer bet in terms of adding exposure into corrective phases in a trading range,” she added. “So that’s what our recommendation has been: To look for these dips to offer opportunities that are shorter-term in nature as opposed to having the kind of buy and hold market that we had last year and even part of the year before off of the COVID corrective low.”

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9:50 a.m. ET: Mobileye, Intel’s self-driving unit, files confidentially for an IPO

Mobileye, the self-driving unit of Intel (INTC), filed confidentially for an initial public offering on Monday, according to a statement from Intel.

While Intel did not provide many details about the IPO, the deal could value the automotive tech unit at more than $50 billion, according to a report from Reuters. Intel first bought Mobileye for $15.3 billion in 2017.

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9:30 a.m. ET: Stocks mixed, coming off overnight lows

Here’s where stocks were trading Monday morning just after market open:

  • S&P 500 (^GSPC): -7.19 (-0.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,321.68

  • Dow (^DJI): -111.09 (-0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,503.71

  • Nasdaq (^IXIC): +14.94 (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,332.30

  • Crude (CL=F): +$0.57 (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $116.75 a barrel

  • Gold (GC=F): +$8.90 (+0.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,975.50 per ounce

  • 10-year Treasury (^TNX): -6.5 bps to yield 1.787{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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8:19 a.m. ET: Bed Bath & Beyond shares soar by more than 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after activist Ryan Cohen discloses nearly 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} stake

Ryan Cohen’s investment firm RC Ventures disclosed a 9.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} stake in Bed Bath & Beyond (BBBY) on Monday, sending shares of the retailer soaring by more than 90{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading.

Cohen, the co-founder of Chewy and chairman of GameStop, also wrote a letter to the board of Bed Bath & Beyond calling for a sweeping set of operational changes and for the board to consider alternatives including a full sale of the company. Cohen was also critical of the compensation of its top executives even as the company experienced share price declines and market share losses.

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7:40 a.m. ET Monday: Stocks head for a sharply lower open

Here’s where stocks were trading Monday morning:

  • S&P 500 futures (ES=F): -47.75 points (-1.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,279.50

  • Dow futures (YM=F): -365.00 points (-1.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,218.00

  • Nasdaq futures (NQ=F): -177.5 points (-1.28{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,662.25

  • Crude (CL=F): +$7.66 (+6.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $123.34 a barrel

  • Gold (GC=F): +$25.40 (+1.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,992.00 per ounce

  • 10-year Treasury (^TNX): +5.5 bps to yield 1.777{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

NEW YORK, NEW YORK - MARCH 04: Traders work on the floor of the New York Stock Exchange (NYSE) on March 04, 2022 in New York City. The Dow fell over 300 points in morning trading despite a positive jobs report as the war in Ukraine continues to worry investors. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 04: Traders work on the floor of the New York Stock Exchange (NYSE) on March 04, 2022 in New York City. The Dow fell over 300 points in morning trading despite a positive jobs report as the war in Ukraine continues to worry investors. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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Stock futures rise as investors eye Russia’s war in Ukraine, await Powell

Stock futures rise as investors eye Russia’s war in Ukraine, await Powell

Stock futures opened increased Tuesday night soon after sliding for a next straight session during the common investing day, with jitters over Russia’s war in Ukraine and its implications for the worldwide overall economy weighing on possibility property.

Contracts on the S&P 500 recovered some before losses. Before, the blue-chip index slid 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, extending Monday’s losses to kick off March trading on shaky footing. The Dow and Nasdaq each also fell sharply earlier, with threat property reeling as buyers contemplated the potential for far more prevalent supply chain and economic market place disruptions as Russia deepened its assaults in Ukraine, and Western sanctions progressed.

Amid the ongoing geopolitical worries, vitality prices rose further more, and West Texas intermediate crude oil price ranges rocketed higher than $100 per barrel. This came even right after the Global Power Company agreed to launch 60 million barrels from global stockpiles to assist ease force in the presently-tight vitality marketplace.

“The difficulty is that that would not be plenty of to offset a prospective source shock coming from Russia, which is genuinely what the market place is grappling with appropriate now,” Ahmed Riesgo, Insigneo main financial investment officer, told Yahoo Finance Dwell.

“The crucial query that all buyers have to ask by themselves right now is, are Russian exports going to quit? And if the answer to that is sure, then we have to have to de-threat further more,” he added about the broader markets. “And if the respond to is no, then this could perhaps be close to a bottom.”

The West’s sweeping sanctions against Russia have so much formally integrated limitations on Russia’s central bank, obtain to the SWIFT world payments process, and freezes on a wide range of key Russian institutions’ and officials’ property, among some other steps.

Several major firms have also added even more tension to Russia, including Apple (AAPL), which claimed Tuesday it would pause all product or service income to the country, and Disney (DIS), which explained it will halt releasing movies in Russia. However, with many S&P 500 parts looking at reasonably little publicity to Russia and Ukraine from a revenue standpoint, lots of strategists prompt the direct fallout to U.S. corporate gains and broader economic system will likely be fairly contained.

“Issues are increasing that the ramped-up sanctions on Russia and its leaders, now which includes limits on the critical SWIFT banking technique, as properly as the Russian central bank and Putin himself, will have repercussions on world wide commerce that are difficult to forecast,” Louis Navellier, chairman and founder of Navellier & Associates, wrote in a notice. “This is on top rated of the disruption of all the goods that Ukraine by itself provides to the world markets. It is frequently believed that the vast majority of the harm will hit Europe, with China by now seen stepping up to supply alternate marketplaces for Russian exports, creating the U.S. even much more of a safe haven than it was presently deemed.”

Still, the uncertainty generated by the war and the prospective for increased world-wide electrical power charges have left investors betting the Federal Reserve will eschew an extremely-hawkish tilt right after its March financial plan assembly. Fed Chair Jerome Powell is set to testify just before Congress on Wednesday as section of his semi-yearly physical appearance before lawmakers, featuring what will probably be the Fed leader’s initial general public remarks on how the geopolitical situation has educated the central bank’s wondering on curiosity charge hikes and monetary plan tightening for the rest of the year.

Powell’s testimony “will be complicated by the war in Ukraine, but it will not have essential a full rewrite,” Ian Shepherdson, main economist for Pantheon Macroeconomics, wrote in a take note Tuesday. “Monetary problems have tightened as a end result of the dip in stock prices and widening credit history spreads, although the pass-by way of from bigger oil selling prices will both crimp consumers’ true incomes and increase production and distribution fees for firms.”

“We consider it likely that the upcoming forecasts, owing 3 months from now, would have shown 5 or even six [interest rate] boosts this 12 months, prior to the invasion of Ukraine,” Shepherdson included. “Now, we might be incredibly surprised to see 6 tightenings, and some of the wilder current market forecasts now search adrift. We never ever expected a 50bp [basis point] shift in March, and it appears even considerably less probably now.”

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6:12 p.m. ET Tuesday: Stock futures rise as traders eye Russia’s war in Ukraine, await Powell

Right here were the key moves in markets Tuesday night:

  • S&P 500 futures (ES=F): +4.25 points (+.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,308.00

  • Dow futures (YM=F): +45 details (+.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,312.00

  • Nasdaq futures (NQ=F): +10.5 points (+.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,016.00

NEW YORK, NEW YORK - FEBRUARY 28: Traders work on the floor of the New York Stock Exchange (NYSE) after New York City Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Stocks plunged over 400 points as investors continue to weigh the situation in Ukraine as Russia continues its invasion of the nation. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – FEBRUARY 28: Traders operate on the flooring of the New York Inventory Exchange (NYSE) immediately after New York Metropolis Mayor Eric Adams rang the Opening Bell at the New York Stock Exchange (NYSE) on February 28, 2022 in New York, New York. Shares plunged around 400 factors as buyers continue on to weigh the problem in Ukraine as Russia proceeds its invasion of the nation. (Image by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Comply with her on Twitter

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Stocks mixed amid Russia’s invasion, sanctions escalation

Stocks mixed amid Russia’s invasion, sanctions escalation

U.S. stocks ended mixed and energy prices soared Monday after an escalation of sanctions against Russia amid an ongoing conflict in Ukraine stoked further uncertainty over the outlook for global financial markets.

The S&P 500 and Dow dropped, but came well off session lows. The Nasdaq ended slightly higher. West Texas intermediate crude oil prices (CL=F) soared to as much as $99.10 per barrel before paring some gains. Brent crude (BZ=F), the international standard, rose to a near seven-year high of more than $104 per barrel. Gold prices jumped while Treasury yields slid as investors piled into safe haven assets.

The market moves Monday came following a tumultuous weekend of fighting in Ukraine as Russia continued its attacks. A new set of sanctions slammed Russia as major Western countries responded to the invasion. And news that Russian President Vladimir Putin had put the country’s nuclear deterrence forces on high alert added to jitters across global financial markets.

The U.S., European Commission, France, Germany, Italy, U.K. and Canada issued a joint statement Saturday agreeing to exclude certain key Russian banks from the SWIFT messaging system, which helps facilitate transactions for trillions of dollars globally. The U.S. on Monday also said it was further prohibiting Americans from transacting with the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federations and the Ministry of Finance of the Russian Federation.

The SWIFT bank bans “would make it more difficult (though not impossible) for these institutions to make cross-border payments,” Capital Economics group chief economist Neil Shearing wrote in a note Monday. “So far at least the West has stopped short of a ban on energy imports from Russia, which would be the most powerful sanctions they could implement.”

“At the same time, the US, European Union, UK and Canada have announced sanctions on the Central Bank of Russia (CBR),” Shearing added. “This is perhaps a more significant move since it will substantially reduce the ability of the CBR to liquidate its foreign assets to support the ruble and help Russian firms service FX-denominated liabilities. Around 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Russia’s international reserves are held in the financial systems of the countries that have signed up to these sanctions.”

The newest sanctions from the West add to a host of others unleashed against major Russian financial institutions, sovereign debt and key officials last week. The ruble opened lower by about 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} against the dollar in offshore trading, and Russia’s central bank more than doubled its benchmark interest rate to a near two-decade high of 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in a move to try and help counter the currency’s depreciation.

“While market fundamentals in the U.S. have seen very minimal deterioration, sentiment-driven concerns are unlikely to change anytime soon. From a market perspective, sanctions against Russia will likely have the largest impact on currency markets, including the ruble, the Euro and the dollar,” David Bahnsen, chief investment officer of The Bahnsen Group, wrote in an email Monday morning.

Still, investors have closely monitored for further fallout for global financial markets and corporations. Automakers including Volkswagen, Renault and Finnish tire-maker Nokian Tyers said late last week they were halting or shifting production due to supply chain disruptions and shortages exacerbated after Russia’s invasion of Ukraine. And while sanctions have stopped short of curbing energy exports from Russia, the world’s third-largest oil producer, traders have remained on alert for any direct or indirect impact of the geopolitical conflict to the already tight global energy markets.

“We continue to think that the overall impact on global supply chains will be relatively small, but the expulsion of some Russian banks from SWIFT means that non-energy trade between Russia and Europe is likely to slump,” Capital Economics’ Shearing said. “Attacks on infrastructure that carries gas to Western Europe may push up prices further and add to inflation pressure. And the additional sanctions may prompt retaliation from Russia, which could cut energy imports to Western Europe.”

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11:09 a.m. ET: Bitcoin prices top $40,000, reaching highest since mid-February

Bitcoin (BTC-USD) shook off volatility seen in other risk assets and jumped Monday, rising about 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to top $40,000.

The largest cryptocurrency by market capitalization reached more than $41,000 just after 11 a.m. in New York, according to Yahoo Finance data. This marked the highest since Feb. 17.

The move came amid a surge in volume of ruble-denominated crypto trading, with many hastening to get their money out of Russia’s currency as sanctions ramped up from major Western nations. According to CoinDesk, ruble-denominated Bitcoin volume recently reached a 9-month high.

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10:11 a.m. ET: U.S. goods trade gap yawns to all-time high as imports jump to record

The U.S. goods trade deficit rose to a record level in January after the value of imports jumped further as companies looked to meet elevated consumer demand.

The trade gap came in at $107.6 billion at the start of 2022, the Commerce Department said Monday. This was larger than the $99.5 billion consensus economists were expecting, according to Bloomberg data, and increased from the $100.5 billion goods trade deficit from December.

Imports rose by $4.4 billion in January compared to December to reach $262.5 billion — also a record high. Exports, meanwhile, shank by $2.8 billion, falling to $154.8 billion in January.

Nearly every goods categories posted an increase in imports for the month. On a percentage basis, foods, feeds and beverages saw the largest jump at 8.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with the value of these rising to $17 billion. Industrial supplies and capital goods imports each rose by around 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, coming in at nearly $62 billion and $69 billion, respectively.

A 12.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} plunge in exports of consumer goods contributed heavily to the overall contraction in January exports. Exports or automotive vehicles and industrials supplies also fell.

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9:31 a.m. ET: Stocks open lower

Here’s where markets were trading just after the opening bell Monday morning:

  • S&P 500 (^GSPC): -48.34 (-1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,336.31

  • Dow (^DJI): -471.26 (-1.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,587.49

  • Nasdaq (^IXIC): -89.64 (-0.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,603.10

  • Crude (CL=F): +$3.57 (+3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $95.16 a barrel

  • Gold (GC=F): +$29.60 (+1.57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,917.20 per ounce

  • 10-year Treasury (^TNX): -9.7 bps to yield 1.887{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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7:55 a.m. ET Monday: Stock futures sink as Russia’s invasion, sanctions escalate

Here were the main moves in markets Monday morning:

  • S&P 500 futures (ES=F): -45 points (-1.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,335.00

  • Dow futures (YM=F): -304 points (-0.89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,690.00

  • Nasdaq futures (NQ=F): -136.25 points (-0.96{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,044.25

  • Crude (CL=F): +$4.14 (+4.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $95.73 a barrel

  • Gold (GC=F): +$23.20 (+1.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,910.80 per ounce

Photo by: NDZ/STAR MAX/IPx 2022 2/17/22 Atmosphere at the NY Stock Exchange in New York City.

Photo by: NDZ/STAR MAX/IPx 2022 2/17/22 Atmosphere at the NY Stock Exchange in New York City.

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Read the latest financial and business news from Yahoo Finance

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Stocks jump as investors eye strong data, Russia’s attacks in Ukraine

Stocks jump as investors eye strong data, Russia’s attacks in Ukraine

Stocks rallied Friday for a second day in a row as traders eyed the latest developments in Russia’s invasion of Ukraine and the world’s response.

The S&P 500 advanced more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, rising further after a 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump on Thursday. The Dow and Nasdaq also built on Thursday’s gains to add more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} intraday on Friday. The Dow closed up by more than 800 points, or 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, posting its best day of 2022. The Nasdaq ended higher by more than 200 points, or 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The move came after new economic data showed U.S. personal spending rose more than expected in January, even accounting for a surge in inflation. Personal consumption expenditures (PCE), a closely watched gauge of inflation, soared by 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or the fastest rate in 40 years.

Stocks moved higher even against the backdrop of Russia’s military attack of Ukraine and Western nation’s sanctions on Russia. Though equities have been sliding and energy commodity prices soaring in recent sessions as investors considered the financial market impacts of the conflict, markets at least temporarily stabilized in absence of further evidence of U.S. economic damage.

“The market is going to overreact to good news and bad. The news [Thursday] morning was sell, sell, sell,” Allan Boomer, Momentum Advisors chief investment officer, told Yahoo Finance Live on Thursday. “And now we analyzed the news … I think what the market has decided is that this Ukraine-Russia [situation] is a tragedy, [but] it’s not necessarily a global event that’s going to cause us to fall into a deep recession.”

“I think the biggest factor right now is the Fed,” he added. “And if anything, this Russian event may make the Fed a bit less hawkish.”

And indeed, market participants have now priced in a much lower probability that Federal Reserve officials will front-load their interest rate hiking cycle and raise rates by 50 basis points at the end of their March meeting. The last time the Fed raised rates by more than 25 basis points in one meeting was in 2000. While such a move would serve as an aggressive shift by the Fed to begin actively reining in inflation, it could also further roil financial markets that have already endured increased volatility this year and that have now also been spooked by the specter of further international conflict.

“This has been the second worst start to the year for U.S. equities since 2000. Yet, these moves are not solely (or even mostly) driven by the Russia/Ukraine tensions,” Seema Shah, Sharing Principal Global Investors chief strategist, wrote in an email. “Equity declines began in January and were, at least initially, driven by inflation concerns and expectations for significantly sharper central bank tightening.”

“Energy prices had been rising steadily throughout the pandemic recovery and in response to lower-than-expected OPEC+ production. Concerns around Federal Reserve balance sheet reduction caused credit spreads to start to gap out in early January,” she added. “The Russia/Ukraine situation is certainly significant—but it has simply compounded these already challenging market conditions.”

Other strategists also suggested that U.S. stocks would trade primarily based on the monetary policy and earnings implications of any impacts of the latest geopolitical tensions.

“The U.S. economy has pretty low exposure directly to Ukraine and the situation with Russia. However, the important thing here is, how does it impact inflation expectations? And that’s really what we’re keeping an eye on,” Anna S. Han, Wells Fargo Securities equity strategist, told Yahoo Finance Live on Thursday. “As inflation becomes a variable for corporates, the potential for it to eat away at earnings, or a potential for it to really steer the Fed to accelerate or decelerate that rate hike cycle — that’s what we’re looking at.”

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4:00 p.m. ET: Dow bas best day of 2022

Here were the main moves in markets as of 4:00 p.m. ET:

  • S&P 500 (^GSPC): +95.92 (+2.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,384.62

  • Dow (^DJI): +834.72 (+2.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,058.55

  • Nasdaq (^IXIC): +221.04 (+1.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,694.62

  • Crude (CL=F): -$0.60 (-0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $92.21 a barrel

  • Gold (GC=F): -$34.20 (-1.78{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,892.10 per ounce

  • 10-year Treasury (^TNX): +1.7 bps to yield 1.9860{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

  • —

1:12 p.m. ET: Ford to pause F-150 production due to chip shortage

Ford (F) said on Friday that it would pause production of its top-selling F-150 pick-up trucks at its Kansas City factory due to the ongoing chip shortage.

The automaker is one of many to suspend or pull back on production due to supply chain-related disruptions. In September, General Motors cut production at a number of North American assembly plants due to chip shortages. Earlier this month, Ford had said it expected sales to drop by the single to low-double-digits due to semiconductor shortages.

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11:50 a.m. ET: Stocks head for back-to-back day of strong gains, Dow adds 600+ points, or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

The three major stock indexes soared Friday midday, looking past geopolitical tensions and instead focusing on a bevy of solid economic data.

The S&P 500 jumped by 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with the financials, healthcare and materials sectors leading the way higher. The Dow added more than 600 points, or nearly 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as Johnson & Johnson, Merck and Amgen outperformed. The Nasdaq added 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

The risk-on mood extended to Bitcoin, which jumped more than 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to trade above $39,000. Treasury yields rose slightly, and the benchmark 10-year yield added 0.7 basis points to hover around 1.98{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

—

10:09 a.m. ET: Pending home sales unexpectedly sink by the most since Feb. 2021 in January

Pending home sales posted the largest decline in nearly one year at the start of 2022, with rising interest rates and tight inventory levels weighing on housing market activity.

Homes under contract to be sold declined by 5.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January compared to December and fell by 9.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the same month in 2021, the National Association of Realtors (NAR) said Friday. The monthly dip was the largest since February 2021, and represented a third straight monthly decline.

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10:00 a.m. ET: Consumer sentiment edged up in late Feb., but still hovered at 10-year low: University of Michigan

Consumer sentiment edged up in late February but still marked the lowest level in a decade, according to the University of Michigan’s closely watched monthly index.

The institution’s headline index from its Surveys of Consumers was upwardly revised to 62.8 in the final monthly print, up from the 61.7 previously reported. Still, even with the revision, this was the worst reading in about 10 years. In January, the index had stood at 67.2.

“The loss was still entirely due to a 12.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decline among households with incomes of $100,000 or more,” Richard Curtin, Surveys of Consumers chief economist, said in a statement. “The February descent resulted from inflationary declines in personal finances, a near universal awareness of rising interest rates, falling confidence in the government’s economic policies, and the most negative long term prospects for the economy in the past decade.”

“The financial harm and growing angst among consumers about rising inflation have pushed nearly nine-in-ten consumers to anticipate interest rate hikes,” he added. “The Fed’s clinging to the transient hypothesis meant missed opportunities to nip inflation at its earliest stages; aggressive actions are now needed to avoid the potential establishment of an inflationary psychology that acts to form a self-fulfilling prophecy.”

—

9:31 a.m. ET: S&P 500, Dow open higher

Here’s where stocks were trading Friday morning:

  • S&P 500 (^GSPC): +12.35 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,301.05

  • Dow (^DJI): +174.10 (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 33,397.93

  • Nasdaq (^IXIC): -10.12 (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,464.71

  • Crude (CL=F): -$0.78 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $92.03 a barrel

  • Gold (GC=F): -$37.30 (-1.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,889.00 per ounce

  • 10-year Treasury (^TNX): +0.9 bps to yield 1.981{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:41 a.m. ET: Personal spending rises 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January, exceeding estimates

U.S. consumer spending rose at a faster rate than expected in January even adjusting for price increases, suggesting the biggest part of U.S. economic activity was holding up despite persistent inflationary pressures.

Personal spending rose at a 2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate in January, the Bureau of Economic Analysis (BEA) said Friday. This came in well above the 1.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} jump expected, according to Bloomberg consensus data, and helped reverse a 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly drop in spending in December.

Real personal spending also exceeded estimates, rising by 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the month versus the 1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase anticipated.

The latest consumer spending data tracked with the Commerce Department’s better-than-expected January retail sales report released earlier this month. That report showed a 3.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise during the month, or well above the 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} increase expected at the time.

BEA data Friday also showed a flat monthly reading on personal income, following a 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise in income in December. Still, this was better than the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} drop anticipated.

—

8:36 a.m. ET: PCE inflation jumps by most since 1982 in January

A closely watched measure of inflation soared at the fastest rate in 40 years in January, adding to a bevy of recent data underscoring persistently elevated levels of inflation reverberating throughout the U.S. economy.

The Personal Consumptions Expenditures (PCE) index jumped 6.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in January over last year, the Bureau of Economic Analysis said Friday. This represented the fastest rise since 1982, and topped expectations for a 6.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} year-on-year increase, according to Bloomberg consensus data. In December, PCE rose by 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on an annual basis. On a month-over-month basis, the PCE rose 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, matching expectations.

Core PCE, which strips out volatile food and energy prices, rose 5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year in January. This core measure of inflation — and the Federal Reserve’s preferred gauge of underlying price trends — also accelerated from the 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annual rate seen in December. And at 5.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, this marked the fastest increase since 1983.

—

7:29 a.m. ET Friday: Stock futures point to slightly lower open

Here’s where stocks were trading ahead of the opening bell:

  • S&P 500 futures (ES=F): -13 points (-0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,272.00

  • Dow futures (YM=F): -119 points (-0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,037.00

  • Nasdaq futures (NQ=F): -18.25 points (-0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,948.25

  • Crude (CL=F): +$0.49 (+0.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $93.30 a barrel

  • Gold (GC=F): -$23.20 (-1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,903.10 per ounce

  • 10-year Treasury (^TNX): +2.3 bps to yield 1.995{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:01 p.m. ET Thursday: Stock futures open lower after rally

Here were the main moves in markets Tuesday evening:

  • S&P 500 futures (ES=F): -21.5 points (-0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,262.50

  • Dow futures (YM=F): -145 points (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 33,011.00

  • Nasdaq futures (NQ=F): -86.75 points (-0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 13,879.75

Traders work on the floor of the New York Stock Exchange at the opening bell on February 22 2022, in New York. - Wall Street stocks retreated early on February 22 as Russian President Vladimir Putin's latest escalation of the Ukraine conflict stoked volatility in markets. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Traders work on the floor of the New York Stock Exchange at the opening bell on February 22 2022, in New York. – Wall Street stocks retreated early on February 22 as Russian President Vladimir Putin’s latest escalation of the Ukraine conflict stoked volatility in markets. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn