Market Snapshot: U.S. stocks bounce as investors assess Russia-Ukraine war, Fed speakers

What’s driving markets

U.S. stocks were holding modest gains as President Joe Biden prepared to wrap up a series of gatherings with U.S. allies and world leaders in Brussels a month after Russian leader Vladimir Putin’s decision to invade Ukraine.

The Biden administration rolled out more sanctions against Russia, with the White House saying the U.S. now has sanctioned more than 600 Russian targets.

“Until we see a cessation of hostilities between Russia and Ukraine, it is prudent for investors to raise cash and reduce exposure to stocks. While the stock market is attempting to recover from its correction, markets are fundamentally riskier and more uncertain than before Russia’s invasion of Ukraine,” said Richard Saperstein, chief investment officer at Treasury Partners, in emailed comments.

Federal Reserve Gov. Christopher Waller, typically a hawkish voice, was due to speak, as well as Minneapolis Fed President Neel Kashkari and Atlanta Fed President Raphael Bostic. Fed Chairman Jerome Powell earlier this week left the door open to rate increases larger than the usual 25 basis point increment, while other Fed officials have echoed the prospect of larger rate rises as early as the central bank’s next policy meeting in May.

Meanwhile, Chicago Federal Reserve President Charles Evans said Thursday he expects the equivalent of six more 25 basis point increases in the central bank’s policy interest rate by the end of the year and three more next year.

“If markets survive Putin, they’ll still have to deal with Powell. The outbreak of war isn’t the only threat to worry about. Even prior to Russia’s invasion of Ukraine, there were growing risks to the investment backdrop that had already precipitated increased market volatility,” Saperstein said.

U.S. economic data showed first-time jobless benefit claims fell 28,000 to 187,000 last week, the lowest since 1969. U.S. durable-goods orders fell 2.2% in February, coming in below forecasts.

The S&P Global U.S. services flash purchasing managers index for March rose to 58.9 from 56.5 a month earlier, while the manufacturing flash PMI rose to 58.5 from 57.3. A reading of more than 50 indicates expanding activity.

In Europe, the MOEX Russia Index rose more than 4% after Moscow Exchange resumed trading after a nearly month with a shortened four-hour session in 33 out of 50 stocks listed on the benchmark. However, foreign shareholders are unable to sell shares, a restriction Russia imposed to counter Western sanctions against its financial system and the weakening ruble.

Meanwhile, crude oil prices
CL.1,
-2.21%
were lower Thursday after a 5% rise Wednesday when Russia limited capacity on a pipeline after storm damage. While the U.S. and the U.K. are boycotting Russian oil, other nations are still buying Russian commodities, notably Europe for its natural-gas needs.

Which companies are in focus?

• Shares of Uber Technologies Inc. 
  UBER,
  +4.19%
  rose 3.6% after The Wall Street Journal reported that the company has struck a deal to list all New York City taxis on its app. 

• KB Home
  KBH,
  -3.97%
  shares fell 0.4% after executives said that issues with supplies and hiring enough workers harmed the company’s ability to complete construction of homes early in 2022, and financial results missed expectations in a Wednesday report

• Olive Garden parent Darden Restaurants Inc.
  DRI,
  +0.62%
  were little changed after the coronavirus omicron wave drove an earnings miss.

Other assets

• The yield on the 10-year Treasury note
  TMUBMUSD10Y,
  2.334%
  rose 5 basis points to 2.368%. Yields and debt prices move opposite each other.

• The ICE U.S. Dollar Index
  DXY,
  +0.11%,
  a measure of the currency against a basket of six major rivals, rose 0.3%.

• Bitcoin
  BTCUSD,
  +3.82%
  rose 0.4% to trade above $43,000.

• Gold futures
  GC00,
  +1.33%
  rose 1.5%, to $1,966 an ounce.

• The Stoxx Europe 600
  SXXP,
  +0.09%
  fell 0.2%, while London’s FTSE 100
  UKX,
  +0.38%
  edged up 0.1%.

• The Shanghai Composite
  COMP,
  +0.90%
  fell 0.6%, while the Hang Seng Index
  HSI,
  -0.94%
  lost 0.9% and Japan’s Nikkei 225
  NIK,
  +0.25%
  rose 0.3%.