Loading...

Markets Drop as Russia Invades Ukraine and Sanctions Follow

February 24, 2022 by Tom Ramstack
<strong></img>Markets Drop as Russia Invades Ukraine and Sanctions Follow</strong>
In this photo provided by the New York Stock Exchange, Gregory Rowe, center, works with fellow traders work on the floor, Thursday, Feb. 24, 2022. Markets shuddered worldwide Thursday and swung sharply after Russia's invasion of Ukraine threatened to push the high inflation squeezing the global economy even higher. (Courtney Crow/New York Stock Exchange via AP)

WASHINGTON — Russia’s attack on Ukraine sent most global stock markets downward Thursday as threats of economic sanctions continued among world leaders.

“We’re going to impair their ability to compete in the 21st century high-tech economy,” President Joe Biden said at a White House press conference.

He also said he would shut off all Russian bank access to U.S. markets.

The United States is being joined in the sanctions by 27 European countries, Australia, Canada, Japan and other countries.

The Dow Jones Industrial Average declined sharply early Thursday before recovering after Biden’s speech to close up about 0.3% compared with Wednesday. The New York Stock Exchange composite index trended downward by about 0.4%.

The stock market had been slipping for several weeks as the risk of war became more obvious.

European markets fell by an average near 4% for the day. Most Asian markets were down more than 1.5%.

Oil prices jumped to more than $100 a barrel for the first time since 2014, prompting economists to renew warnings about inflation.

Russia is one of the world’s biggest producers of oil and natural gas. Sanctions threatened by western European nations include shutting off oil and natural gas imports from Russia.

Biden said he would try to protect U.S. consumers from the economic impact of war but added that he could make no guarantees.

“I know this is hard and Americans are already hurting,” Biden said.

He added, “Putin is the aggressor. Putin chose this war and now he and his country will bear the consequences.”

He predicted an impact on nearly all sectors of the Russian economy that he said would “degrade its industrial capacity for years to come.”

He anticipated a spike in U.S. oil prices when he said, “We’re taking active steps to bring down the costs.” He did not elaborate.

The value of cryptocurrencies dropped by steep margins early in the day but recovered to close up. Bitcoin rose in value by about 3%. Ethereum ethers were up by about 2%.

Exchange market media company CoinMarketCap reported that more than $160 billion of value was eliminated from cryptocurrency markets within 24 hours of the Russian invasion before climbing Thursday.

A big unknown for international and consumer markets is the long-term damage from a protracted trade war.

A Citi Global Wealth Investments advisory said, “There is severe uncertainty regarding the extent of the conflict itself, potential knock-on impacts on other regional disputes, unknown consequences as sanctions affect financial markets, a likely rise in cybersecurity intrusions, extension of supply chain disruptions and other inflationary impacts.”

Russian President Vladimir Putin has responded with unspecified threats of reprisal.

A Russian Foreign Ministry statement said, “There should be no doubt that sanctions will receive a strong response, not necessarily symmetrical, but finely tuned and painful to the American side.”

Biden appeared to anticipate that the “finely tuned” response might include cyberattacks when he said, “If Russia pursues cyberattacks against our companies, our critical infrastructure, we’re prepared to respond.”

Tom can be reached at tom@thewellnews.com

In The News

Health

Voting

Wall Street

Markets Shudder on Dashed Inflation Hopes; Dow Falls 1,250

NEW YORK (AP) — The Dow Jones Industrial Average sank more than 1,000 points Tuesday as markets shuddered following Wall... Read More

NEW YORK (AP) — The Dow Jones Industrial Average sank more than 1,000 points Tuesday as markets shuddered following Wall Street’s realization that inflation isn’t slowing as much as hoped. The sell-off knocked the benchmark S&P 500 3.7% lower in afternoon trading, threatening to snap a... Read More

Key Inflation Gauge Tracked by the Fed Remains a High 6.3%

WASHINGTON (AP) — A measure of inflation that is closely tracked by the Federal Reserve jumped 6.3% in May from... Read More

WASHINGTON (AP) — A measure of inflation that is closely tracked by the Federal Reserve jumped 6.3% in May from a year earlier, unchanged from its level in April. Thursday's report from the Commerce Department provided the latest evidence that painfully high inflation is pressuring American... Read More

Wall Street Gets Back to Tumbling After 1-Day Reprieve

NEW YORK (AP) — Markets worldwide are back to tumbling on Thursday, and Wall Street is down roughly 3% in... Read More

NEW YORK (AP) — Markets worldwide are back to tumbling on Thursday, and Wall Street is down roughly 3% in a widespread wipeout as worries about a fragile economy roar back to the fore. The S&P 500 was 3.1% lower in afternoon trading, more than reversing... Read More

Wall Street Wobbles a Day After Tumbling Into Bear Market

NEW YORK (AP) — Wall Street is wobbling between gains and losses Tuesday in its first trading after tumbling into... Read More

NEW YORK (AP) — Wall Street is wobbling between gains and losses Tuesday in its first trading after tumbling into a bear market on worries about a fragile economy and rising rates. The S&P 500 was 0.1% higher in early trading after a couple big companies flexed financial... Read More

Markets Tumble Worldwide, Bear Market Growls on Wall Street

NEW YORK (AP) — Wall Street is tumbling even more Monday, sending the S&P 500 down more than 20% from... Read More

NEW YORK (AP) — Wall Street is tumbling even more Monday, sending the S&P 500 down more than 20% from its record, amid fears that a recession is more likely given how unshakeable inflation has become. The S&P 500 was 2.7% lower in the first trading... Read More

US Markets Point Higher; EU Hikes Rates to Cool Inflation

NEW YORK (AP) — U.S. markets appeared to be headed for gains Thursday with European Central Bank announcing its first interest... Read More

NEW YORK (AP) — U.S. markets appeared to be headed for gains Thursday with European Central Bank announcing its first interest rate hike in 11 years. The bank will make two quarter-point increases, with the second arriving in September. The surprise decision is in reaction to inflation that... Read More

News From The Well