Wall Street climbs on hopes of easing geopolitical tensions - Dailyforextrading

Wall Street climbs on hopes of easing geopolitical tensions - Dailyforextrading

Stocks climbed, while bonds fell with the dollar as speculation that geopolitical tensions could be easing overshadowed data showing inflation is still running hot.

The equity market halted a three-day drop as Russian President Vladimir Putin said he hopes for a diplomatic solution to tensions with the U.S. and its allies and announced a partial pullback of thousands of troops massed near the Ukrainian border.

Meantime, President Joe Biden said it remains possible that Russia will invade Ukraine, and noted the U.S. hasn’t yet verified Moscow’s claims that it has withdrawn some forces.

Tech shares led gains in the S&P 500, while energy producers joined a slump in oil. Treasury 10-year yields topped 2%. Gold, the Japanese yen, and the Swiss franc fell.

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Markets have whipsawed as the Ukraine crisis added to existing concerns over inflationary pressures and the withdrawal of stimulus by the Federal Reserve.

The U.S. producer price index jumped in January by more than forecast as companies contend with supply-chain and labor constraints.

“Speculation around the Fed’s action plan, which goes hand-in-hand with inflation, has no doubt been driving market volatility, but so have geopolitics,” said Mike Loewengart, managing director of investment strategy at E*Trade from Morgan Stanley.


“And with the tension between Russia and Ukraine seemingly cooling, at least for now, the market could welcome some certainty. So while the PPI read is hotter than expected, heightened inflation may already be priced into the market.”



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