Shares closed in the red on Friday as investors assessed Russian President Vladimir Putin’s upbeat remarks on diplomatic discussions with Ukraine against a weaker-than-expected footprint on US consumer sentiment.
The S&P 500 was down 1.3% to 4,204.36 and the Dow Jones Industrial Average was down 0.7% to 32,943.33. The Dow posted a fifth consecutive weekly loss, the longest losing streak since 2019. The Nasdaq Composite plunged 2.2% to 12,843.81. Although all three indices opened in green, stocks took a turn after a new report showed US consumer sentiment worsened more than expected in early March as consumer inflation expectations rose. at their highest since 1981.
Crude oil prices rallied after plunging Thursday when the US West Texas broker fell below $ 110 a barrel after surpassing $ 130 a barrel in recent sessions. However, pump gas prices have risen to new highs.
Apparently positive developments in Russia’s discussions with Ukraine have helped at least temporarily to put investors back into risky assets. Russian President Vladimir Putin said during a meeting with his Belarusian counterpart Alexander Lukashenko that there have been “some positive developments” in talks with Ukraine, according to a transcript of their meeting. Putin added that the discussions took place “almost daily”.
The news also helped traders look beyond another report showing high inflation decades and shake off some of the volatility of recent sessions. The February Consumer Price Index (CPI) from the Bureau of Labor Statistics this week showed another price hike even before Russia stepped up its attacks on Ukraine. The leading CPI, up 7.9% from last year, highlighted the inflationary pressures reverberating across the US economy, with everything from groceries to rentals and air fares becoming more expensive to everyday consumers.
“The fire of inflation was already hot and now with war-led inflation added to the mix, it will get even hotter, triggering a rush by the world’s central banks to pull back the stimulus sooner than expected,” Chris Rupkey, chief economist at FWDBONDS, he wrote in an email. “A rise in inflation rates historically preceded economic recessions and this time prices have risen to levels that once again pose a threat to growth.”
“Markets have encouraged this economic recovery and a return to strong economic growth, but cheers will turn to tears if the inflation epidemic pushes businesses and consumers to the brink of recession,” he added.
And indeed, volatility has been a hallmark of the market environment so far in 2022, with the S&P 500 still down more than 10% year-to-date after slipping into a correction for the first time last month. Index, or VIX, held at a high level of over 30.
“We are seeing some really dramatic moves, and it’s all really tied to Ukraine right now, and in a secondary way, in terms of interest rates,” Octavio Marenzi, CEO of Opimas, told Yahoo Finance Live Thursday. “This war in Ukraine will give the Fed the ammunition, the cover it needs, not to raise interest rates too quickly. And I think Jay Powell is a very lukewarm type of inflation fighter and he won’t do as much as he has to do. to keep it under control. And that seems like an excuse to kick the can further and not do too much too soon. ”
4:00 PM ET: Stocks fall after equaling previous gains
Here are the main moves of the markets at the end of the trading session on Friday:
- S&P 500 (^GSPC) : da -55,16 (-1,29%) a 4.204,36
- Dow (^ DJI) : da -230,74 (-0,70%) a 32.943,33
- Nasdaq (^IXIC) : da -286,16 (-2,18%) a 12.843,81
- grezzo (CL=F) : +3,19$ (+3,01%) a 109,21$ al barile
- Oro (GC=F) : da -11,60$ (-0,58%) a 1.988,80$ per oncia
- Tesoro decennale (^TNX) : -0,7 bps per un rendimento del 2,0040%S&P 500 (^GSPC) : da -55,16 (-1,29%) a 4.204,36
11:37 am ET: Rivian Shares Slide After Company Missed Q4 Revenue Estimates Due to Growing Supply Chain Issues
Riviano (RIVN) shares fell intraday Friday after the electric vehicle company posted fourth-quarter sales that missed consensus expectations and offered a manufacturing outlook that fell short of some analysts’ estimates.
The company achieved fourth-quarter revenue of $ 54 million, less than the expected $ 64 million, according to Bloomberg data. Meanwhile, the adjusted losses per share of $ 2.43 were also greater than the expected loss of $ 2.05 per share.
For the full year, Rivian sees production in 2022 of a total of 25,000 vehicles. Wedbush analyst Dan Ives said he was looking for production in 2022 of around 40,000 units.
“Since its IPO in late 2021, Rivian’s story has been a bad episode outside the Twilight Zone for the Street,” Ives wrote in a statement Friday morning. “The company jumped the first quarter out of the box on supply chain ‘surprises’, then instituted a 20% unit price increase due to inflationary pressures which was then picked up 48 hours later by management after a streak. of customer cancellations and, finally, night added to the pain with a very soft drive drive for 2022 “.
“Is the story broken or fixable? That will be the debate this morning on the road as this visionary EV pickup / sport utility story must start its running engines in 2022 otherwise competition from Ford, GM, Tesla and many more. others will follow its potential electric vehicle customer base in 2023, ”Ives added.
10:41 AM ET: US steps up economic pressure on Russia by removing privileged trading status
President Joe Biden on Friday announced another set of measures intended to increase economic pressure on Russia, with the United States joining allies to remove Russia’s preferred trade status.
As part of the new moves, the United States will revoke normal permanent trade relations for Russia, dealing “another serious economic blow” to the country for the invasion of Ukraine, according to the White House. The United States, along with other G7 nations, have also agreed to ensure that Russia will not be able to obtain funding from major multilateral institutions, including the International Monetary Fund and the World Bank.
Other measures include a complete freezing of sanctions on a growing list of Russian elites and a ban on the export of luxury goods to Russia.
10:05 am ET: Consumer sentiment drops more than expected in early March: University of Michigan
Consumer sentiment plummeted in March as inflation fears and the geopolitical conflict between Russia and Ukraine weighed.
The University of Michigan Surveys of Consumers Index fell to 59.7 in its preliminary reading in March. This was below 62.8 in February and also missed expectations for a reading of 61.0, according to Bloomberg data. Under the headline, a sub-index tracking consumer expectations for future conditions fell to 54.5 from 59.4 in February, and a sub-index tracking consumer assessments of their current situation fell to 67.8 from 68.2
Notably, consumer one-year inflation expectations shot up to 5.4% from 4.9% in February to reach their highest level in more than four decades.
“Consumer sentiment has continued to decline due to falling inflation-adjusted incomes, recently accelerated by rising fuel prices following the Russian invasion of Ukraine,” Richard Curtin, chief economist at Surveys of Consumers He said in a statement on Friday morning. “The forecasted inflation rate for the year ahead has risen to its highest level since 1981, and expected gas prices have seen the largest monthly uptick in decades. Personal Finances they are expected to worsen in the next year by the largest proportion since the polls began in the mid-1940s. ”
9:30 am ET: Stocks open sharply higher
Here’s where the shares were traded on Friday morning:
- S&P 500 (^GSPC) : +30,78 (+0,72%) a 4.290,30
- Dow (^ DJI) : +292,27 (+0,88%) a 33.466,34
- Nasdaq (^IXIC) : +93,62 (+0,71%) a 13.224,83
- grezzo (CL=F) : +$0,68 (+0,64%) a $106,70 al barile
- Oro (GC=F) : da -32,00$ (-1,6%) a 1.968,40$ per oncia
- Tesoro decennale (^TNX) : -0,3 bps per un rendimento del 2,006%
7:44 am ET Friday: Stock futures rise, Dow futures earn over 350 points
Here’s where the shares were traded on Friday morning:
- S&P 500 futures (ES=F) : +56,25 punti (+1,32%) a 4.313,5
- Dow futures (YM=F) : +379 punti (+1,14%) a 33.531,00
- Future Nasdaq (QN=F): +231,25 punti (+1,7%) a 13.817,25
- grezzo (CL=F) : da +$0,85 (+0,8%) a $106,87 al barile
- Oro (GC=F) : da -30,40$ (-1,52%) a 1.970,00$ per oncia
- Tesoro decennale (^TNX) : +0,9 bps per un rendimento del 2,018%
6:10 pm ET Thursday: Stock futures extend losses
Here’s where the shares were traded on Thursday night:
- S&P 500 futures (ES=F) : -3 punti (-0,07%) a 4.254,25
- Dow futures (YM=F) : +55 punti (+0,17%) a 33.207,00
- Future Nasdaq (QN=F): -22 punti (-0,16%) a 13.564,00