Escalating Russia-Ukraine crisis could help the Fed engineer a soft landing
The rapidly escalating tensions between Ukraine and Russia have cast fresh uncertainty on the Federal Reserve’s policy outlook and could force central bank officials to take a more nimble approach as they begin raising interest rates for the first time in three years.
“Overly restrictive monetary policy could result in an outright policy error especially if the business cycle continues to deteriorate,” JPMorgan Chase strategist Dubravko Lakos-Bujas wrote in an analyst note to clients this week. “At the same time, the Russia/Ukraine crisis could force a reassessment of the Fed tightening path resulting in central banks turning less hawkish, while policymakers may consider additional fiscal stimulus.”
Developing Story
Stocks fall as Ukraine declares state of emergency
Ukraine has officially declared a 30-day state of emergency and is urging its citizens in Russia to flee as Kyiv prepares for a potential invasion by Russian forces. Ukraine has been hit by massive cyber attack per reports spooking investors and sending stocks lower.
Stocks open higher as investors monitor Russia-Ukraine tensions
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $33,562.83 | -33.78 | -0.10% |
| SP500 | $4,305.06 | +0.30 | +0.01% |
| I:COMP | $13,373.63 | -7.89 | -0.06% |
U.S. stocks opened in the green on Wednesday as investors continue to monitor the situation between Russia and the Ukraine.
ICYMI: Home Depot latest…
Home Depot
incoming CEO talks rising lumber prices…
Lowe’s raises full-year forecast as home improvement demand holds steady
U.S. home improvement chain Lowe’s Cos Inc lifted its full-year sales and profit forecast on Wednesday, as home improvement retailers benefit from resilient demand for tools and building materials.
Lowe’s shares, which fell nearly 4% on Tuesday following the profit margin warning from larger rival Home Depot
, rose 2.6% in premarket trading.
The surge in spending on do-it-yourself home projects seen during the early stages of the pandemic has so far held up better than feared even as restrictions ease, while builders and handymen are upgrading their toolkits to complete a backlog of delayed projects.
Stock futures attempt rebound as traders examine sanctions on Russia
U.S. equity futures attempted to rebound Wednesday morning from the prior session’s plunge on anxiety over Russian President Vladimir Putin’s authorization to send soldiers into eastern Ukraine. Continue reading
Bitcoin price remains volatile trading above $38,000
Investors continued to monitor the escalating tensions on the Russia-Ukraine border.
In a rare move Tuesday, while stocks fell drastically, bitcoin and other crypto bucked the trend and actually gained, although trading bounced between gains and losses during overnight hours. Continue reading
S&P 500’s correction could deepen if Ukraine-Russia crisis escalates
An armed clash between Ukraine and Russia, coupled with punishing sanctions for Moscow, could push U.S. stocks toward another major loss, according to Goldman Sachs economists.
The S&P 500 entered correction territory Tuesday, down 10% from its last peak, as investors weighed the conflict and fresh U.S. and U.K. sanctions on Russia. For the year, it’s down over 9%. Continue reading