US stocks suffer worst week since January

US stocks fell on Friday and recorded their worst week in nearly two months as they fought Ukraine has strengthened And the appetite for risk on Wall Street withered.

The S&P 500 was down 1.3% on Friday as the declines accelerated to close. The decline raised the weekly S&P 500 losses to 2.9%, its biggest decline since the end of January.

The high-tech Nasdaq Composite dropped 2.2%, raising its weekly fall to 3.5%.

Markets fluctuated violently over developments in Ukraine, with Russia’s invasion of the country resonating around the world. Rising commodity prices, ahead of this week’s data show that US inflation has reached its level The highest level in 40 yearsAnnoyed traders and questioned many economic forecasts.

Economists at Goldman Sachs lowered its U.S. growth forecast for 2022 to 1.75 percent at the end of Thursday, up from 2 percent earlier. In Ukraine. “

Investors have turned to derivatives markets to hedge against further volatility in markets, especially in the credit sector, as they look for signs of an economic downturn from the war and jump in commodities.

The number of shares of Put in one popular fund traded on high-yield corporate bonds – known for its ticker HYG – has approached a record high this week. These contracts may pay off if the fund’s value falls.

The cautious mood among investors also made a profit of $ 22 billion in the US market, with investors throwing US government debt. Yields rise as bond prices fall.

The yield on the two-year policy-sensitive note rose by 0.05 percentage points to 1.74%, with investors calling for a bet that the Federal Reserve would have to aggressively tighten policy to cool inflation. The 10-year Treasury yield rose by 0.01 percentage point to 2%.

Trading in the finance markets tonight on Friday showed that Wall Street expected the Fed to raise interest rates to about 1.75% by the end of the year, based on the futures prices of Fed funds. This is an increase of about 1.3% at the beginning of the month, with investors signaling their belief that the Fed can provide a single large interest rate increase of 50 basis points this year.

European stock markets, however, ended on a positive note on Friday. The Stoxx Europe 600 regional index rose 2.2 percent this week, recovering from a 7 percent low last week.

Investors withdrew $ 13.5 billion from European stocks in the week to March 9, the largest weekly revenue since data provider EPFR began tracking cash flow in 2000.

“What we have seen so far is an indiscriminate sale, especially of European stocks, but also worldwide,” said Francesco Sandrini, head of global asset-building at Amundy. “Extreme defensive cuts that were not affected by the crisis have been heavily sold, so the rebound is not surprising.”

A line chart of restructured indices showing a volatile week of headline-driven stock fluctuations

Brent crude oil, which has been rocking in recent days as investors Evaluate the possibility Of the OPEC group of producers, which raised its output to compensate for US sanctions against Russia, climbed 3.1% and settled for $ 112.67 a barrel after EU leaders Said at the summit They discussed further moves against Moscow.

In Asia, Hong Kong’s Hang Seng was down 1.6% and the Japanese Topix was down 1.7%. Australia’s S & P / ASX 200 was down 0.9%, while China’s CSI 300 was up 0.3%.

The Hang Seng Tech index fell 8.9% on Friday – then closed down 4.3% – after the Nasdaq Golden Dragon China index closed 10% at its lowest level since 2016.

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