Volatility as Markets Open
Investors try to find balance amid heightened geopolitical tensions and raging war in Eastern Europe. Therefore a volatile session was expected on Monday. The Nasdaq 100 finished slightly higher, while the S&P 500 and Dow Jones ended lower. The tech stocks rebound showed that some buyers are seeking opportunities to jump on.
War and Recourse to Safe Havens
Meanwhile, Russia and Ukraine held the first round of talks on Monday and both sides agreed to further negotiations in order to resolve the conflict. This brings hope for a potential ceasefire agreement down the road if both get what they want. However, following a flurry of economic sanctions, the Russian rouble lost more than 25% of its value, prompting Russia’s central bank to double its key interest rate.
There is still hesitation though as market participants continue to assess the impact of the Russian invasion of Ukraine and the prices of commodities. The surge in crude oil, natural gas, and grains added to the inflationary pressure felt worldwide, while supply chain issues are strained even more. Vigilance remains the overall market sentiment as demand for safe havens such as gold rises.
In summary, stocks generally ended Monday on a modest high with 4 out of 11 S&P 500 sectors in the green. The best performers were energy, industrials, and consumer discretionary while real estate and financials lagged behind.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
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