
Week In Perspective March 14, 2022: Ukrainian War Impacts Global Economy
Intensifying hostilities in Ukraine continued to unsettle markets, as investors grappled with the war’s impact on the global economies.
Intensifying hostilities in Ukraine continued to unsettle markets, as investors grappled with the war’s impact on the global economies.
War in Ukraine weighed on stocks as investors assessed the economic impact of continued hostilities, expanding economic sanctions, and potentially higher inflation due to rising oil prices and new stresses on the global supply chain.
Escalating tensions in Eastern Europe upended markets in February, sending stocks lower for the month. The Dow Jones Industrial Average dropped 3.53 percent while the Standard & Poor’s 500 Index fell 3.14 percent, and the Nasdaq Composite lost 3.43 percent.1
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Investors rode a rollercoaster of emotions as rising hostilities at the Russian-Ukrainian border sent stocks sharply lower before a powerful late-week rally erased early losses.
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Stocks closed lower for the week as escalating tensions on the Russian-Ukrainian border added to existing jitters over higher inflation and a pending tightening of monetary policy.
A hot inflation print and the growing concern of a Russian invasion of Ukraine sent stocks tumbling late in the week, leaving major indices lower for the five-trading days.
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At the start of the week, stocks extended the previous week's rally with some high-growth companies leading the move higher. Strong company profits fueled the market in the middle of the week until an earnings disappointment from a mega-cap company took investors by surprise.
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