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By Jeffrey
Cane | Friday, February 25 Fast-Forward. This was a
holiday-shortened market week, yet it seemed as if an entire year just
happened. Investors' nervousness descended into panic only to
quickly give way to hope. In the end, even after a scary plunge early
yesterday that put the Nasdaq Composite into bear
market territory, stocks gained for a second day and for the week, closing
near their session highs and snapping a two-week losing streak. Stocks were buoyed by two kinds of hopes
today. One amounted to wishful thinking that a solution to the Ukraine
conflict could soon be found. That came after headlines reported that
the Kremlin had signaled it was open to diplomacy. But Russian
troops continued their advance and Vladimir Putin
later called
on Ukraine's military to overthrow its democratically elected government. The other hope was grounded on somewhat more
realistic expectations. Three weeks before the Federal
Reserve is widely expected to begin raising interest
rates, many see the central bank now moderating its tightening over the near
term, to accommodate the economic uncertainty posed by Russia's invasion.
"I think what's essentially happening
is the market is celebrating not having to worry about interest rates much
anymore because the central banks are going to use the Ukrainian situation as
an excuse for inflation," investment strategist Louis
Navellier wrote today. The S&P 500 rose 2.2% today,
with eight of its 11 sectors posting gains of more than 2% and another one
coming up just shy of 2%. Only 16 of the index's components fell. For
the week, the S&P 500 was up 0.8%. The Dow Jones Industrial Average
surged 2.5% – its biggest daily percentage gain since Nov. 9, 2020. The Dow
was down slightly for the week. The Nasdaq Composite closed up 1.6% today,
and was up 1.1% on the week. Crude oil
prices, which
touched $100 this week, retreated today. Futures fell 1.3%, to $91.59 a
barrel, leaving them up 1.5% on the week. Year to date, oil is up
22%. Gold futures fell 2% today, to
$1,886.50 an ounce. The U.S. dollar was weaker today
against other major currencies. Treasuries were little changed
with the yield on the benchmark 10-year note settling at 1.984%. The turnaround in stocks appears fragile.
The conflict in Eastern Europe and the possibility of further sanctions still
threatens to roil energy prices and exacerbate inflation. And higher interest
rates are coming in any case. Make sure to read this weekend's Barron's
for perspectives on what comes next in the market after the Ukraine
Shock Next week brings President Joe
Biden and Fed Chairman Jerome Powell to Capitol
Hill, and the February jobs report comes out on Friday. It could be a
long week. Watch our
weekly TV show on Fox Business Saturdays at 10 a.m. or 11:30 a.m. ET; or
Sundays at 10 a.m. or 11:30 a.m. ET. This week, see more on the investing
implications of Russia's invasion of Ukraine, including an interview
with Jason Trennert, CEO of Strategas. |
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DJIA: +2.51% to 34,058.75 The Hot Stock: Etsy +16.21% Best Sector: Materials +3.65% |
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