Wall Street Today | Russia's Ukraine incursion could complicate the Fed's rate decisions

Moomoo Recap US wrote a column · Feb 22, 2022 18:06

Wall Street Today | Russia's Ukraine incursion could complicate the Fed's rate decisions

Stocks decline as Biden proposes Russia sanctions

Stocks fell, pushing the S&P 500 into a correction, as the imposition of sanctions against Russia over its Ukraine militancy put further stress on a market that has shown signs of buckling over the Federal Reserve's efforts to subdue inflation.

The $S&P 500 Index(.SPX.US)$ declined 1%, bringing its losses from a January high to 10%. The European Union and U.K. also signaled they are ready to impose further penalties unless Putin changes course. However, the Russian president has denied plans to invade Ukraine.

Russia's Ukraine incursion could complicate the Federal Reserve's interest rate decisions

The outcome of Russia's incursion into two breakaway regions of Ukraine is uncertain, but it has already caused commodities prices to shoot higher. Economists say it's the price of oil that matters most because crude prices can drive up inflation and slow down the global economy.

What happens to oil could also determine whether the Fed continues a brisk pace of hiking after it raises interest rates in March or ultimately slows the pace due to growth concerns.

Covid infections plummet 90% from U.S. pandemic high, states lift mask mandates

The U.S. is reporting about 84,000 new cases per day on average, according to data compiled by Johns Hopkins University, down from a pandemic high of more than 800,000 daily cases on Jan. 15.

As the nation emerges from the omicron wave, the states and the federal government are trying to move past the crisis mentality that has gripped the nation for two years ago.

Trump's Truth Social launches on Apple's app store, with glitches

Trump's social-networking platform, Truth Social, has gone live in the U.S., but some would-be users reported being unable to create an account or received error messages when trying to do so. Others were prompted to join a wait list.

Still, the $Twitter (Delisted)(TWTR.US)$-like app owned by Trump Media & Technology Group, was top of $Apple(AAPL.US)$'s App Store's free apps chart early Tuesday after becoming available to download Monday. Shares of $Digital World Acquisition Corp(DWAC.US)$, the blank-check company that is merging with Trump Media & Technology Group, rose 10% Tuesday.

Home Depot falls most since 2020 as margins spook investors

While sales remained robust for the home-improvement retailer, much of the growth appeared to be driven by higher prices as customer transactions declined and the cost of sales increased. Gross margin, a closely watched gauge of profitability, fell from a year earlier.

$Home Depot(HD.US)$ fell 8.9% in New York trading on Tuesday -- the most since March 2020 -- bringing the stock's decline this year to almost 24%.

Volkswagen in advanced talks over €20bn listing of Porsche brand

$VOLKSWAGEN AG(VLKAF.US)$ has taken the first step towards a €20bn initial public offering of its Porsche brand, in what would be one of Germany's biggest listings in years.

Under the current plan, VW would seek to raise at least €20bn through floating about a quarter of Porsche which it expects to be valued at between €80bn and €90bn, according to a person with direct knowledge of the matter. Half of the shares offered would have voting rights attached, they added, and a special dividend was also being considered.

Oil prices approach $100 a barrel on threat of Russia-Ukraine war

Futures for Brent crude, the benchmark in international energy markets, added $1.45 a barrel, or 1.5%, to settle at $96.84 and earlier climbed to $99.50, their highest level since 2014.

In Europe, natural-gas prices rose 10% to €80, equivalent to $91.65, per megawatt-hour after Germany halted the Nord Stream 2 pipeline in response to Russian aggression against Ukraine.

U.S. home-price appreciation picks up once again in cities

A measure of home prices in 20 U.S. cities gained 18.6%, up from 18.3% the previous month, the S&P CoreLogic Case-Shiller index showed Tuesday. It was a bigger gain than economists expected and came after the growth in home prices had slowed slightly for fourth straight months.

Source: Bloomberg, CNBC, WSJ, Financial Times

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