US stocks fluctuated on Friday, as investors followed geopolitical developments in Eastern Europe after Thursday’s sharp sell-off.
The Dow opened lower, while the S&P 500 and Nasdaq Composite rose slightly at the opening bell.
All three indices were on track to end the week in the red.
On Thursday, as fears of a Russian invasion of Ukraine deepened, Wall Street retreated, sending the Dow down 622 points, or 1.8%, its worst day so far this year.
Overnight, global markets remained virtually stable.
Australia’s S&P/ASX 200 and Japan’s benchmark Nikkei index closed down 1% and 0.4% respectively, while South Korea’s Kospi was little changed.
Chinese markets were mixed: the benchmark Shanghai Composite index gained 0.7%, Hong Kong’s Hang Seng index fell 1.9%.
In Europe, stocks were little changed at the opening. London’s FTSE 100 and France’s CAC 40 were up 0.2%, while Germany’s DAX was up 0.1%.
Market watchers are nervous about what a military conflict between Russia and Ukraine could mean for oil prices and the global economy, especially if the United States and Europe’s major economies get involved.
Investors hate uncertainty. A full-scale invasion of Ukraine would trigger an instinctive sale of shares as companies face the possibility of an oil shock, higher inflation and a sanctions regime.
A prolonged market downturn would wipe out the wealth accumulated by households in the stock market and retirement accounts.
Market instability can also damage trust between consumers and businesses.
Source: CNN Brasil
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