May 22, 2022

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US stocks mixed after Putin claimed progress in Ukraine talks

US stocks mixed after Putin claimed progress in Ukraine talks

US stocks fluctuated on Friday and oil prices rose, extending the choppy extension to markets as investors assessed developments from The war in Ukraine.

The Dow Jones Industrial Average rose 205 points, or 0.6%, in morning trade. The S&P 500 rose about 0.1%, while the Nasdaq Composite fell 0.6%. Stock futures rose strongly after the Russian President

Russian President Vladimir Putin

He said in televised statements that there were positive developments during the talks with Ukraine, even with the Russian forces Continue pound Ukrainian cities.

Major indices are on track to close out the week lower, as volatility prevails and inflation fears rise. The Dow Jones Industrial Average recently fell 0.7% this week, its fifth consecutive weekly loss. The S&P 500 and Nasdaq Composite are running at a loss of 1.4% and 1.6%, respectively for the week, which would cover the fourth weekly loss in the past five weeks for both indices.

Some investors and traders said that big swings are now common for major stock indices, but even by those standards the jumps and falls this week have been extreme. On Monday, higher oil prices sent stocks lower, with the S&P 500 index posting its worst day in more than a year. Two days later, the benchmark index jumped 2.6 percent, its biggest gain since 2020.

Among the worst performers this week: technology companies. The high-tech Nasdaq Composite entered bear market territory on Monday, which is defined as down 20% from its recent high. Traders said rising inflation pressured technology stocks.

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“Earnings growth expectations are slowing dramatically, while inflation is rampant. At the same time, inflation is rampant,” said Dan Morgan, senior portfolio manager at Synovus Trust Co., which owns shares in several tech heavyweights. On the growth of large profits severely affected.

On Friday, Brent crude futures, the international oil standard, rose 1.1% to $110.52, after paring some gains after Putin’s comments. Oil prices are hovering near their highest level in years, although they have eased in recent days. Earlier this week, the United Arab Emirates said it would put pressure on the Organization of the Petroleum Exporting Countries (OPEC). To pump more oilhelping to allay some concerns about the supply crisis.

In morning trading in New York, I contributed

DocuSign

It fell by 20% after the release of the software maker Lighter than expected instructions. Shares of energy companies fell with

HalliburtonAnd the

chevron

And the

ExxonMobil

All trading less.

In Europe, the Stoxx Europe 600 continental index rose 1.8%, putting it on track for weekly gains. Germany’s DAX climbed 3.4%. Shares of the Italian aerospace company

Leonardo

Sportswear company Adidas was among the top gainers in Europe, jumping 11% and 6.3%, respectively.

Pearson

It jumped 21% after Apollo Global Management said it was evaluating A potential cash offer for a textbook publisher.

Investors considered the advance in stock markets a comforting rally, noting that Mr. Putin’s comments contained few details. “You need something meaningful to indicate that there is a real positive trend for this,” said Sima Shah, chief strategist at Principal Global Investors. “There will be a lot of ups and downs in the future.”

Commodity prices are hot now. But the prices that investors pay in the open market for commodities like coffee, copper or corn have nothing to do with the price customers pay in the store. WSJ’s Dion Rabouin explains. Illustration: Adele Morgan

The stock market in Russia remained closed on Friday. In foreign trade, the ruble rose against the dollar to trade at around 114 rubles per dollar. Evaluating the ruble has become difficult since Russia imposed measures to stop the sale of the currency, and Western banks shun Russian assets.

Investors are watching the struggle closely. Meanwhile, the rapidly changing sanctions imposed by the West on Russia have affected traders’ ability to predict how trade and supply chains will be disrupted. President Biden said Friday that the United States will join key allies and the European Union in moving to The abolition of normal trade relations with Russia.

The conflict kept global markets on a violent swing. Investors are increasingly concerned that the war will hamper global economic growth and maintain inflation At multi-decade heights. Thursday’s US Consumer Price Index data showed that inflation last month was largely driven by Energy price increase. The data was not taken into account for March, when oil prices jumped.

Global stock markets have swung wildly this week.


Photo:

Allie Joseph/The Associated Press

The volatility prompted investors to scramble to rebalance portfolios. In recent weeks, investors have moved in and out of safer assets as news reports about the conflict have changed rapidly. For example, the ICE US Dollar Index, which measures the US currency against a basket of other currencies, lost 0.1% after Mr. Putin’s comments, erasing the gains made earlier in the day.

Meanwhile, the yield on the benchmark 10-year Treasury also reversed course, rising to 2.015% on Friday from 2.008% on Thursday. Yields rise when bond prices fall.

In Asia, stock markets were mixed, with Japan’s Nikkei 225 down 2.1%, while Hong Kong’s Hang Seng fell 1.6% to close at its lowest level since July 2016. In contrast, the Shanghai Composite added 0.4%. The three indices closed lower on a weekly basis.

This came after the Securities and Exchange Commission Temporarily named On Thursday, five Chinese companies listed in New York, including Yum China Holdings and BeiGene, as companies whose audit worksheets cannot be examined by US regulators. This led to a sharp sell-off in US-listed Chinese stocks, with the Nasdaq China Gold Dragon down 10%.

Alexander Osipovich contributed to this article.

Write to Caitlin McCabe at [email protected] and Corrie Driebusch at [email protected]

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