Russian Rebellion has a Minimal Impact on Markets

The stock market experienced a slight decline as Wall Street’s retreat from its recent rally extended into a second week. On Monday, the S&P 500 dropped 0.4% or 19.51 points, closing at 4,328.82. Although the index remains near its one-year high, it was weighed down by the underperformance of tech stocks, leading the Nasdaq to a loss of 1.2%. The Nasdaq fell by 156.74 points to 13,335.78. The Dow Jones Industrial Average also dipped by less than 0.1% or 12.72 points, closing at 33,714.71. This week, there are not many significant economic or earnings reports that could provide insight into whether the economy can avoid a painful recession, especially after global central banks raised interest rates rapidly to combat inflation.

Lucid Group, an electric vehicle manufacturer, saw a 1.5% increase in its stock value following an announcement of its partnership with Aston Martin. Under the agreement, Lucid Group will supply powertrain and battery systems to the luxury car brand. PacWest Bancorp, a bank that has faced scrutiny from Wall Street, experienced a 4% rise in its stock price after selling a portfolio of loans to enhance its cash reserves. Meanwhile, cruise company Carnival reported stronger-than-expected results and revenue for the latest quarter, yet its stock fell by 7.6%. This may be attributed to the company’s forecasted earnings per share, occupancy levels, and other measures for the current quarter, which may have disappointed some investors.

Adding to the market’s uncertainty was a short-lived armed rebellion in Russia over the weekend. While the ongoing war in Ukraine has already contributed to global inflation, investors largely overlooked the brief mutiny by mercenaries. Crude oil prices remained relatively stable, in contrast to the rapid price increases observed during the early days of the Ukrainian conflict. The price of US crude oil rose by 0.3% to $69.37 per barrel, while Brent crude, the international benchmark, increased by 0.6% to $74.44 per barrel. (Read more stock market stories.)