Stock traders quickly took exit actions against market values. The conflict in eastern Europe (intensified Thursday by Russian bombing) hastened a drop in scores. Between shelters and equities, a recovery was recorded by Friday’s close.
An accelerated bearish blow
At the time that geopolitical tensions led to a Russian order to attack Ukraine, the markets responded quickly. This complex situation kept operators on the lookout since previous weeks, hastening their exits from stocks.
The stock market headed for a last-minute downtrend when Vladimir Putin authorized the execution of military tactics on Ukrainian territory, thus intensifying the conflict.
In this way, the S&P 500 index plummeted to a minimum of 4,131.72 points, in the hours after the start of the Russian offensive. However, this fact did not prevent stock market investors from seeking opportunities to retake positions, taking advantage of the fall in shares.
Although much of the week saw an accelerating blow to the downside, stocks were able to recover their figures for the weekly close. The volatility of the moment allowed buyers to acquire more holdings at a lower price.
New levels in the oil market
As a result of the tense panorama in Eastern Europe, the prices of the oil industry shot up at full speed in a few days. In this sense, the expected estimate of $100 per barrel was fulfilled this week, with prices rising above it.
The first to break through the barrier in the face of the bearish blow to the markets was Brent crude, to a peak of $105.59. Similarly, US WTI oil reached as high as $100.35. However, it then started a round of pullbacks that returned prices to previous levels.
On the other hand, the gold market experienced a one-off rise to very close to $2K, reaching $1,975.70. Trader fear hastened safe haven searches, but that trend quickly dissipated by Friday’s close.
Recovery of values
Despite all the stress the markets experienced last Thursday, the situation would turn favorable by the end of the week. Within this scenario is also the position expressed by the United States, which announced the application of sanctions against Russia.
Both the Dow Jones industrials and the Nasdaq tech responded similarly to the S&P 500 in the bearish blow. From Thursday to the last close, both rose to 34,058.75 points and 13,694.62 points respectively. Its weekly evolutions were -0.05% and 1.08%.
With stocks rallying after the conflict in Russia and Ukraine, the dollar’s strength receded. The DXY index score fell again from 97 points, alluding to the diversification of capitals away from the USD.
Consistent with this, the “fear” index (VIX) also fell, down 30 points to 27.59 (at press time). The stock market was able to breathe some relief after the tension on Thursday, pending international pronouncements against Russia’s attack.
