Markets “In a Nutshell” for February 22, 2022
Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 1.90%, the S&P 500 was down 1.60%, and the NASDAQ fell 1.80%. Foreign stocks (MSCI EAFE) were also down, falling 1.00%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 1.93%. (Data source: Wall Street Journal)
The potential conflict between Russia and Ukraine drove markets lower this past week as after Russia said they were moving troops away from the border, the US and UN said the opposite, and they had in fact increased the number of troops. On Monday, Russian troops had entered Ukrainian territory that was already held by Russian-backed rebels. Once this happened, sanctions were placed on Russia from many countries around the World. The market has not had many reactions as a whole, but oil prices continue to rise as Russia produces roughly 10% of oil in the World. The market will continue to pay attention to the possible war and what economic impacts it may cause.
Fed Meeting Minutes Released
On Wednesday, the Fed released minutes from the most recent meeting. There was some relief among markets as the Fed indicated they did not think a 0.50% rate hike was necessary. They also said they were not looking to make any overly aggressive moves in March, however they noted that a substantial reduction in the Fed balance sheet seemed appropriate. As markets digested what they heard, the probability of a 0.50% rate hike went from 94% to 33%. The potential conflict in Ukraine may also alter the Fed’s decision as an all-out war would most likely cause many issues across the World economically.
When was the last time the price of WTI Crude Oil was above $100? (Scroll Down for Answer)
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2) 2014, although oil prices have not been over $100 a barrel since 2014, we are moving closer to $100 as the threat of a Russia and Ukraine war increases.