Stocks plummeted on Monday, with the Dow falling by around 400 points, after a new round of Western sanctions hit Russia’s financial markets. However, markets’ losses have been mitigated with reports of Russian as well as Ukrainian officials are discussing a possible resolution to the conflict even when Russian troops are continuing their assault in the capital city of Kyiv.
Stocks plunged sharply before the opening and the Dow Jones Industrial Average was down 1.2 percent, or around 400 points and the S&P 500 lost 1.1% and the Nasdaq, a tech-focused Composite almost 1 percent.
The price of energy jumped yet again on Monday and Brent crude rising by more than 3percent to more than $100 per barrel. experts warn the prices may go higher due to the repercussions of the war.
The Russian ruble fell as much as 30 percent in comparison to dollar U.S. dollar on Monday in the wake of the latest round of Western sanctions. The Moscow exchange was closed for the day , and the central bank of Russia more than tripled the interest rate to 20% percent.
The move comes after the most recent cycle of Western sanctions that have hit Russia’s economy hard: It was reported that the United States joined European allies on Saturday in removing Russian banks out of the messaging system between banks, SWIFT, which connects more than 11,000 financial institutions across more than 200 countries.
Although stocks fell Monday, the market was buoyed due to news reports of Russian as well as Ukrainian officials are gathering near the border to discuss an agreement to end the war.
Despite the fact that officials have met for talks, Russia has continued its attack on Ukraine and has entered the second largest city in the country this week (though Ukrainian troops have put more of a fight than they expected and are still in control of Kyiv, the capital city of Kyiv).
“Putin’s attack on Ukraine is turning out to be a huge mistake for his country , as his army fails to take any major cities , while the international community reacts with a devastating array of financial counterattacks” declares Vital Knowledge founder Adam Crisafulli. Although stocks have taken some damage from the ongoing conflict, “investors will obviously be paying close attention” for any updates on the talks with Russia as well as Ukraine.
Markets have experienced volatile trading during the past few weeks due to tensions between Russia and Ukraine increased, culminating in Russian president Vladimir Putin officially launching his invasion of Ukraine last Thursday. The market reacted strongly on Friday, with the Dow increasing by 800 points to its highest level since late 2020–as reports first surfaced regarding Russia declaring it was willing to engage in discussions with Ukraine.
