[사진 = 연합뉴스]Major indexes in the New York Stock Exchange ended lower on the 8th (local time) as the US announced its own measures to ban Russian oil imports. The stock market was very volatile that day. After the market opened, it showed a downward trend, but it rose in the afternoon despite news of US President Joe Biden’s Russia energy sanctions, but eventually ended with weakness at the end of the market. The Nasdaq once rose more than 1%.
On the New York Stock Exchange (NYSE), the Dow closed at 32,632.64, down 184.74 points, or 0.56%, from the previous trading day. The S&P 500 index fell 30.39 points (0.72%) to 4170.70, and the Nasdaq index, which focuses on technology stocks, fell 35.41 points (0.28%) to 12,795.55.
The market paid attention to the possibility of a sharp rise in raw material prices and an economic slowdown. As inflation continues to rise, soaring prices of commodities such as oil, natural gas, nickel and palladium are fueling the possibility of further inflation.
International oil prices broke above $120 on the news that the United States and Britain had agreed to ban Russian oil imports. The price of West Texas Intermediate (WTI) rose 8.4% during the day to $129.44 a barrel. Brent oil prices once soared 8% to $133.13 a barrel.
Rystad Energy forecasts that if the US and Europe stop importing Russian crude oil, the international oil price could exceed $200 a barrel. The European Union (EU) did not participate in this measure.
Earlier, Russia warned that oil prices could soar to $300 a barrel if the West bans Russian oil imports. In fact, gasoline prices in the United States are hitting all-time highs. According to the American Automobile Association (AAA), the average price of gasoline in the U.S. was $4.173 per gallon today. This surpassed the previous high of $4.114 in July 2008.
In the midst of the worst inflation in 40 years due to COVID-19, concerns about inflation are growing as oil prices, natural gas nickel, palladium, and even grain prices such as wheat have risen.
The yield on the 10-year U.S. Treasury bond rose to a high of 1.87% today. This is another increase from the 1.77% level recorded the previous day. When inflation concerns grow, long-term interest rates tend to rise.
Shares rose sharply during midday after Ukraine’s President Volodymyr Zelensky said in an interview with ABC that he was willing to hold talks with Russia, hinting at the possibility of Ukraine halting its push to join NATO.
By sector, stocks related to consumer staples, health, and utilities fell more than 1%, while stocks related to energy and consumer discretionary rose. The Russell 2000 Index of small-cap stocks rose 0.60% to 1963.01.
New York Stock Exchange experts said the market was moving on inflation concerns. “There are still safe-haven trades, but inflation concerns are overwhelming,” Shima Shah, chief strategist at Principal Global Investors, told the Wall Street Journal.
“The situation in Ukraine shows no signs of improving, and the comments coming from Washington are getting tougher,” Cliff Hodge, chief investment officer at Cornerstone Wells, told CNBC. “The market seems very reasonable.”
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