US stock indices were trading lower early Friday as
investors are watching closely the developments between Russia and Ukraine and
fearing of a war breakout.
The bond yield fell marginally. The yield on the 10-year
Treasury fell to 1.94% from 1.97%.
The Dow Jones Industrial Average (DJIA) was trading 35 points
or 0.1% lower at 34,283.
S&P 500 index (SPX) was 9 points or 0.2% lower at
The NASDAQ Composite Index trades 95 points or 0.7% lower
Rising tensions between Russia and Ukraine is yet another
concern for investors as they try to project how markets and the economy will
react to rising inflation. The broader market has been unsettled all week and is
moving towards a weekly loss.
Communications stocks and banks surged up as Netflix
jumped 2.7% and JPMorgan Chase grew 1.4%. The gains were ousted by losses from
several big technology stocks, which have been pulling the market down because
of their size. Intel dropped 2.8%. Energy companies were mixed as US crude oil
prices lowered 1%.
The Russia-Ukraine crisis have been diverting markets all
week that have been more focused on inflation, central banks’ monetary policy
and economic growth. The US has issued very detailed warnings yet about how a
Russian invasion of Ukraine might unfold, and its Western allies went on high
alert for any attempts by the Kremlin to create a false pretext for a new war
A military conflict could disrupt energy supplies and
make for extremely volatile energy prices as Russia is a major energy producer.
Investors are focused on the Federal Reserve and its
plans of interest rate hikes to curb rising inflation.
The central bank wants to move decisively to fight
inflation with higher interest rates. Wall Street is trying to project how a
more aggressive monetary policy will impact markets, especially after years of
ultra-low interest rates and more supportive policies.
Inflation is still a major concern as companies continue
facing supply chain hurdles and higher costs.
US markets will be closed on Monday in observance of