U.S. stock futures moved slightly higher in the early morning trading hours of Tuesday, before markets open, amid the ongoing geo-political concerns. Futures tied to the Dow Jones Industrial Average rose 0.47%, while the S&P 500 futures and Nasdaq 100 futures inched up 0.49% and 0.39% respectively.
On Monday, officials from both the fighting nations ended a key round of talks and mutually agreed that there could be more dialogue and negotiations in the forthcoming days. Meanwhile, Ukraine’s defense continues to retain control of key cities, away from the hands of Russian troops.
The sanctions on Russia imposed by the West had a devastating effect on Russia’s currency, which led to the nation increasing its interest rate from 9.5% to 20%.
The Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) lost 0.49% and 0.24% respectively at the close of yesterday’s volatile trading day. Meanwhile, the Nasdaq 100 (NDX) rose 0.34%. The choppiness in the market reflects confusion among investors who are still assessing and weighing the extent and economic repercussions of the Russia-Ukraine war.
U.S. Economy: An Edge Over Other Nations?
Despite the escalating tensions in Ukraine, the strength that the U.S. has shown during the numerous phases of the COVID-19 onslaughts makes analysts hopeful of another solid recovery of the U.S. economy.
Notably, the economy had shown impressive expansion and recovery from the pandemic, as is evident from January’s strong labor market report.
Importantly, various U.S. data indicate an uptick in U.S. economic activity in recent weeks. Several Wall Street analysts are looking at another month of labor market strength in the February job markets report, expected to be announced this Friday.
Moreover, analysts are also not too worried about the effects of the rising prices of oil and gas, wheat, palladium, and other related commodities, on the U.S. economy. Economic advisory firm IHS Markit anticipates a 0.4% headwind to the 2022 U.S. growth rate from higher oil prices, and a negligible impact in 2023 and 2024.
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