Washington D.C., (Business News Report)|| US stocks have closed significantly lower in light of Eastern European geopolitical tensions on Friday.
The Wall Street market bled, as investors are worried about the exacerbation of tension between Russia and Ukraine.
Most of the indexes of the eleven major sectors of the S&P 500 Index declined, led by the technology sector.
The energy sector index rose as oil prices rose to their highest level in seven years.
The stocks of Apple, Amazon, Nvidia and Microsoft fell and affected more than any other sectors the decline of the S&P 500.
According to preliminary data, the Standard & Poor’s 500 index fell by 85.76 points, or 1.90, to close at 4418.32 points, while the Nasdaq Composite Index lost 400.02 points, or 2.83%, to 13784.13 points.
The Dow Jones Industrial Average fell 510.12 points, or 1.45%, to 3,471.47 points.
Drumbeat of war
In a related context, the drumbeat of war between Russia and the West gets louder against the backdrop of the Ukrainian crisis.
Whether the war occurred or not it is part of the struggle for Western-Russian influence. While Moscow and Washington seem to be on alert with their hands on the trigger, the final results and extent of the conflict may be difficult to predict now.
Financial markets and economists are following the situation and analyzing its dimensions. But in fact they are more concerned with the date and extent of the US Federal Reserve’s raising interest rates.
Nevertheless, some prominent analysts warn not to underestimate the repercussions of the Ukrainian crisis and the costs of an unstable peace on the global economy.
Even if the possibilities of a full confrontation between the parties to the crisis recede, the international economy is in a state of instability and uncertainty as a result of the effects of the Coronavirus pandemic. This requires not underestimating the seriousness of the effects of the Russian-Western conflict on international economic recovery.
