Psycho’s Market Recap – March 9 , 2022

Stocks rose on Wednesday to recover some losses after a volatile start to the week, as market participants contemplate the global impact of Russia’s invasion of Ukraine and nervously wait for the Consumer Price Index (CPI) report due tomorrow.

Markets Today

  • S&P 500 (SPY): +2.66%
  • Nasdaq (QQQ): +3.60%
  • Dow Jones (DIA): +2.10%
  • Russell 2000 (IWM): +2.82%
  • Volatility Index (VIX): -8.37%
  • Apple (AAPL): +3.50%
  • Advanced Micro Devices (AMD): +5.23%
  • Bumble (BMBL): +42.02%
  • United States Oil Fund (USO): +11.52%
  • Cloudflare (NET): +8.06%
  • Datadog (DDOG): +12.66%
  • Coinbase (COIN): +10.48%
  • JP Morgan (JPM): +4.01%

Crude oil prices pulled back from 14-year highs after Ukraine signaled it was aiming to pursue a diplomatic solution to Russia’s war. West Texas Intermediate crude sank to just over $110 per barrel, while Brent crude traded just above $112 per barrel Wednesday afternoon. 

The impact of high oil prices can be felt most directly by consumers who will pay more for gas at the pumps. Higher energy prices will likely drive inflation higher adding to the worry that elevated prices could become entrenched. This all comes a week before the Fed is set to meet for their monthly monetary policy meeting, where it is widely expected the interest rate will be raised. 

Victoria Greene, founding partner at G-Squared Private Wealth, said “You can’t have the rise at the fuel pumps not hit the economic pockets of everyday Americans, because it’s going to make everything go up in cost. Anything that rides on four or six wheels, including all shipping – it’s going to make all costs rise. We’re already in an inflationary environment, it’s something we’re going to have to watch.”

In world news, a growing list of US companies announced fresh plans to stop doing business and operating in Russia for the foreseeable future. In the restaurant space, McDonald’s (MCD), Starbucks (SBUX), Coca-Cola (KO), and PepsiCo (PEP) said they would close some or all operations in Russia. Amazon Web Services said it would stop bringing on new sign-ups from Russia and Belarus, and Shopify announced it was suspending operations in the countries as well.

“Life is a succession of lessons which must be lived to be understood.” –Ralph Waldo Emerson