Stocks fall, oil tops $100 a barrel as Ukraine war rages – Press Telegram


NEW YORK (AP) – Oil prices have skyrocketed and Wall Street investors traded more money on shares and ultra-secure U.S. government bonds on Tuesday as Russia intensified its war on Ukraine.

Shares fell as investors tried to gauge how the conflict will affect the global economy. The S&P 500 index fell 1.8% at 2:04 p.m. Eastern time. The Dow Jones Industrial Average fell 704 points, or 2.1%, to 33,188 and the Nasdaq fell 1.6%.

The most important movements came from the oil markets, agricultural products and government bonds. Oil has been a major concern because Russia is one of the world’s largest energy producers. The recent rise in prices increases the pressure on persistent and high inflation that threatens households around the world.

U.S. benchmark crude rose 8.6% to $ 103.94 a barrel, the highest price since 2014. Brent crude, the international standard, rose 7.8% to $ 105.60.

The crisis in Ukraine sparked an extraordinary meeting of the International Energy Agency board, which resulted in all 31 member countries agreeing to release 60 million barrels of oil from their strategic reserves.

Russia’s invasion of Ukraine also put more pressure on agricultural commodity prices, which were already rising with rising inflation. Wheat and corn prices have risen more than 5% per bushel and are now more than 20% so far this year. Ukraine is a key exporter of both crops.

Investors continued to put money into bonds. The 10-year Treasury yield fell sharply, to 1.70% from 1.83% on Monday. Now he’s back where he was in January. In February, it again surpassed 2% for the first time in more than two years. The 10-year Treasury yield is used to set interest rates on mortgages and many other types of loans.

The conflict in Ukraine has shaken global markets and raised concerns about economic growth amid rising inflation and central bank plans to raise interest rates. The United States and its allies have been putting significant pressure on Russia’s financial system as the nation continues its push toward Ukraine and its major cities.

The value of the Russian ruble fell to an all-time low on Monday after Western countries blocked some Russian banks from a key global payment system. Also on Monday, the US Treasury Department announced further sanctions against Russia’s central bank.

Several companies have announced plans to reduce or withdraw from business in Russia, or to suspend operations in Ukraine due to the conflict. The Russian central bank has also raised its key rate from 9.5% to 20% in a desperate attempt to prop up the plunging ruble and prevent a run against the banks. Russia’s stock market remained closed on Tuesday.

Investors are closely following developments in Ukraine as they await the latest updates from the Fed and the US government on the economy. Fed Chairman Jerome Powell will testify before Congress later this week, and that could provide clues on the way forward to raise interest rates. A report on Friday will also show whether strength in the U.S. labor market continued in February, allowing the Fed more room to raise rates.

Several stocks have made big moves in earnings. Target rose 10.5% after reporting solid fourth-quarter financial results and said it will invest up to $ 5 billion this year in physical stores, remodeling and other initiatives. The working day increased by 6.8% after reporting encouraging gains.


Vega reported from Los Angeles.

Stocks fall, oil tops $100 a barrel as Ukraine war rages – Press Telegram Source link Stocks fall, oil tops $100 a barrel as Ukraine war rages – Press Telegram

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