US stock futures higher amid Russia-Ukraine tensions

Published On: February 14, 2022Categories: Stocks & Shares1.6 min read

Futures tied to the Dow Jones Industrial Average jumped 83 points, or 0.2%, S&P 500 futures added 0.1% and Nasdaq 100 futures gained 0.05%

Stock futures were slightly higher Sunday evening as investors continued to monitor the developing tension between Ukraine and Russia and potential Fed rate hikes.

Futures tied to the Dow Jones Industrial Average jumped 83 points, or 0.2%. S&P 500 futures added 0.1% and Nasdaq 100 futures gained 0.05%.

The moves follow a rocky week for stocks, which were pressured by a hot inflation report and fears of a Russian attack on Ukraine. The Dow and S&P 500 dropped 1% and 1.8%, respectively, for the week. The tech-heavy Nasdaq Composite shed more than 2%.

On Friday, the Dow tumbled 503.53 points, or 1.43%. The S&P 500 shed 1.9% and the Nasdaq Composite lost 2.8%. The declines came as the White House warned that a war in Ukraine could begin ‘any day now’. Oil prices climbed Friday, along with traditional safe havens like Treasury’s.

Traders are also weighing the potential impact of surging inflation on the U.S. economy, as well as the potential measures the Federal Reserve could take to quell the jump in prices.

The Labor Department reported last week that inflation in January surged 7.5%, its biggest gain since 1982. Rate-sensitive tech stocks were hit hard by the report, which briefly sent the 10-year Treasury yield above 2% — the first time since 2019 that the 10-year traded above that level.

After the report’s release, St. Louis Fed President James Bullard said that he was open to a 50-basis point rate hike next month, adding that he wanted to see a full percentage point of hikes by July. To be sure, San Francisco Fed President Mary Daly said Sunday that the central bank should take a ‘measured’ approach when raising rates.

This past week, the primary story was all about inflation, Cantwell said. Every single time the inflation number comes out, it keeps surpassing expectations and the while the Fed has signalled that it’s going to raise rates, they haven’t actually raised them. The longer they wait, the faster they’re going to have to raise them.

About the Author: Jonathan Adams

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