Signs of progress in talks to end what Russia calls a “special military operation” had helped global stocks jump this week, but the Kremlin said on Thursday there was no agreement yet.
On Wednesday, the S&P 500 closed more than 2% higher while the tech-heavy Nasdaq ended nearly 4% higher after the US central bank raised interest rates by 25 basis points. , as planned, and planned for equivalent increases at each meeting this year.
“There’s a lot in there (the Fed statement) that should have prevented that stock market relief, so in that sense I think it was a bit of a stretch,” said U.S. strategist Philip Marey. senior at Rabobank.
“The main thing at the moment remains the negotiations between the Ukrainians and the Russians. It remains to be seen whether the optimism regarding a possible peace agreement is exaggerated.”
Shares of big banks slid in premarket trading, with JPMorgan Chase & Co, Bank of America and Citigroup falling nearly 1% each. The US Treasury yield curve flattened to its lowest level in nearly two years as the Fed downgraded its economic growth forecasts. [US/]
Tesla Inc. fell 0.7% to lead losses among growth megacapitals. The electric vehicle maker said it was doing its best to maintain production at its Shanghai plant while cooperating with China’s COVID-19 prevention measures.
Energy stocks rose as oil prices climbed 4% amid warnings of supply shortages due to the shutdown of Russian oil supplies. [O/R]
Occidental Petroleum led the gains, up 3.1%. The S&P 500 energy sector – which has gained 27.8% so far in 2022 on the back of soaring crude prices – recorded its fourth straight day of declines in the previous session.
As of 7:15 a.m. ET, the Dow e-minis were down 54 points, or 0.16%, the S&P 500 e-minis were down 8 points, or 0.18%, and the Nasdaq 100 were down 34.25 points, or 0.25%.
The CBOE volatility index, also known as the Wall Exchange’s fear gauge, rose after closing at its lowest level since Feb. 18 in the previous session.