Dow Falls 400 Points As Investors Weigh Latest Sanctions On Russia
The market fell on Monday with the Dow falling by around 400 points in the wake of a fresh round Western sanctions hit Russia’s financial markets. However, markets’ losses have been offset by reports that Russian and Ukrainian officials are meeting to discuss the possibility of an end to the conflict, even while Russian troops continue to wage an offensive in the capital city of Kyiv.
Stocks plummeted sharply after the beginning of the day and the Dow Jones Industrial Average was down 1.2 percent, or around 400 points while the S&P 500 lost 1.1% and the Nasdaq’s tech-heavy Composite almost 1%.
Energy prices rose yet again on Monday, with Brent crude rising over three percent, to over $100 per barrel, with experts warning that prices could surge higher due to the repercussions of the war.
The Russian ruble plunged as high as 30 percent over dollar U.S. dollar on Monday in the wake of the latest round of Western sanctions, while the Moscow stock exchange was shut for the day , and Russia’s central bank more than doubled interest rates to 20 percent.
The move comes after the most recent series of Western sanctions that have targeted Russia’s economy. In the United States, United States joined European allies over the weekend in blocking Russian banks out of the interbank messaging system, SWIFT, which connects more than 11,000 financial institutions from more than 200 countries.
Even though stocks were trading lower Monday, market sentiment did gain a little after stories that Russian as well as Ukrainian officials are meeting near the border to negotiate an end to the war.
Even though officials are meeting to discuss the issue, Russia has continued its offensive on Ukraine, entering the country’s second largest city over the weekends (though Ukrainian troops have put up more resistance than anticipated and hold the capital city of Kyiv).
“Putin’s offensive against Ukraine is turning out to be a huge mistake for his country as his forces fail to take any major cities , while the international community responds with crushing series of financial counterattacks,” declares Vital Knowledge founder Adam Crisafulli. While the stock market has taken some damage from the ongoing fighting, “investors will obviously be paying close attention” for updates on the negotiations between Russia in the Ukraine and Russia. Ukraine.
Markets have been volatile during the past few weeks because tensions between Russia and Ukraine escalated, with Russian the president Vladimir Putin officially launching his invasion of Ukraine on Thursday. The market reacted strongly on Friday, with the Dow increasing by 800 points to its best performance since late 2020–as news first broke concerning Russia declaring that it is willing to discuss dialogue with Ukraine.