Markets Rally Despite A Full-Scale Russian Invasion of Ukraine

Key Takeaways

  • The S&P 500 closed at 4,384.65 up from 4,348.87 last Friday. The VIX closed little changed from last Friday at $27.59 well under the levels it peaked at on Thursday AM.
  • Markets had the best day of 2022 so far after their prodigious reversal on Thursday. New EU and American sanctions against Vladimir Putin announced before close. 
  • Despite the shock to markets and much of the world at the events of Thursday, there wasn’t a flee to safety assets you might expect.
  • Commodity prices spiked on news of the invasion then retreated Friday. Brent breached $100 for the first time since 2014, but was just above $98 on Friday. Nasdaq gains lagged the Dow and S&P.

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Russia invaded Ukraine Thursday morning beginning with air and missile attacks. Russian troops poured over the border from three sides and special forces and paratroopers attacked key points. By Friday afternoon fighting was raging on the edges of Kyiv, Ukraine’s capital. Ukrainian resistance has so far proved more effective than some feared but US intelligence officials still have stated they fear the capital could fall within days. Nonetheless, the Ukrainian government led by President Zelesnsky remains defiant and is arming citizens to prepare for an urban insurgency. The R...
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