Futures for major stock indexes wobble as West signals more financial pressure on Russia is coming
U.S. stock futures wavered and oil prices jumped, extending a volatile stretch for markets as investors assessed developments from the war in Ukraine.
Futures for major U.S. indexes struggled to find direction early Friday and shifted between small gains and losses. The S&P 500 added 0.5%, while contracts for the technology-focused Nasdaq-100 advanced 0.6%. Those for the Dow Jones Industrial Average gained 0.4%.U.S. stocks fell Thursday after cease-fire talks between Russia and Ukraine yielded little progress and data showed U.S. inflation in February reached a four-decade high. All three indexes are on track for weekly losses of 1.3% or more.
Brent crude futures, the international benchmark, advanced 2.2% to $111.83 a barrel. Oil prices are hovering near their highest level in years, despite retreating in recent days. The prospect of a boost in supply has helped assuage some fears about a supply crunch. Earlier this week, the United Arab Emirates said it would push the Organization of the Petroleum Exporting Countries to pump more oil.
VIX and VIXmain fell 0.7% and 1.6% separately.
Gold-main 2204 fell 0.3% to $1995.1.
In Europe, the pan-continental Stoxx Europe 600 added 0.6%, putting it on track for a weekly gain. Shares of Telecom Italia and Italian aerospace manufacturer Leonardo were among those that led the index higher, with each climbing 7% or more.
Global stock markets have continued to swing wildly this week, as investors have grown increasingly fearful that the war in Ukraine will stunt economic growth and keep inflation at multidecade highs. Thursday’s consumer-price index data in the U.S. showed that inflation last month was largely driven by an increase in energy prices. The data didn’t account for March, when oil prices have spiked amid the war in Ukraine.
Fast-changing sanctions imposed on Russia by the West have clouded traders’ ability to forecast how trade and supply chains might be disrupted. Investors have closely monitored discussions about a possible cease-fire. On Thursday, Russia and Ukraine failed to gain traction on an agreement or reach a deal to protect civilians.
President Biden is expected to announce Friday that the U.S. will join major allies and the European Union in calling to revoke normal trade relations with Russia. European Union leaders have said they are ready to move quickly with further sanctions.
Trading has also been volatile in other asset classes, as investors have scrambled to rebalance portfolios. Investors in recent weeks have piled into assets perceived as havens to shelter amid the uncertainty. The ICE U.S. Dollar index, which measures the greenback against a basket of other currencies, climbed 0.2%,extending a recent stretch of gains.
Meanwhile, the yield on the benchmark 10-year Treasury note declined to 1.978% Friday, from 2.008% Thursday. Yields fall when bond prices rise.
On Thursday, the Securities and Exchange Commission provisionally named five New York-listed Chinese companies, including Yum China Holdings and BeiGene, as firms whose audit working papers couldn’t be inspected by U.S. regulators. That prompted a sharp selloff in U.S.-listed Chinese stocks Thursday, with the Nasdaq Golden Dragon China Index tumbling 10%.