- US stock markets came under pressure on Thursday, with all major US indices down more than 1.0%.
- Markets fell as tensions between Russia, Ukraine and NATO continue to rise amid uncertainty over the Federal Reserve’s tightening schedule.
- The S&P 500 fell 2.0% to retreat below 4,400.
US stock markets. came under pressure on Thursday, with all major US indices down more than 1.5% on the day as tensions between Russia, Ukraine and NATO continue to rise amid uncertainty over the timing of the tightening of the Fed. The S&P 500 lost 2.0% to drop below the 4,400 level once again, with bears now looking for a test of Monday’s lows at 4,360, while the Nasdaq 100 fell 2.9% and the Dow fell 1.8% to reach new lows for the week at 34,350. The S&P 500 CBOE Volatility Index was up more than three points to mid-27.50, but was still substantially lower than Monday’s high of 32.00.
New fighting broke out between Russian-backed separatist forces and the Ukrainian military in eastern Ukraine’s Donbas region on Thursday as NATO leaders continued to sound off about a possible Russian invasion as the country continued to build up troops. Meanwhile, Russia released its response to US security overtures, criticized the country for not taking its concerns seriously and expelled the deputy US ambassador from Moscow. NATO leaders have warned that Russia is looking for a pretext/excuse to take military action against Ukraine and investors fear how subsequent NATO sanctions against Russia could affect the global economy.
Against the backdrop of already high inflation and fresh warnings from Conservative James Bullard on Thursday that the Fed should brace for the possibility of longer-lasting inflation, the risk that Russian commodity export bans will trigger a new round of global inflation is a worrying prospect. . More Fed speakers will speak on Friday, including influential politicians such as Fed Vice President Lael Brainard and New York Fed President John Williams. Traders will be on the lookout for anything that might suggest the Fed is ready to go big with a 50bp rate hike in March, after the latest Fed meeting minutes (published on Wednesday) did not include such bombs.
Additional technical levels
Source: Fx Street
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