May 16, 2022

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Stocks rise, oil slips as investors watch Ukraine negotiations

Stocks rise, oil slips as investors watch Ukraine negotiations

US stocks jumped, oil prices fell and Treasury yields reached their highest level in nearly three years as investors surveyed developments in Ukraine and await a possible interest rate hike by the Federal Reserve this week.

The S&P 500 rose 0.5% on Monday. benchmark stock index Down for four of the past five weeks. Investors were spooked by the war in Ukraine and the rising commodity prices sparked by the conflict, as well as the prospect of higher interest rates. They paid to Perceived havens are like goldduring the sale of shares.

Investors said positive comments from both Ukrainian and Russian officials about round of negotiations Markets strengthened on Monday. The Dow Jones Industrial Average rose 0.7% and the technology-focused Nasdaq Composite rose 0.2%.

The yield on the 10-year Treasury rose to 2.09% on Monday from 2.004% on Friday. Yields are moving in the opposite direction to bond prices and are on track to reach their highest close since July 2019.

Edward Park, chief investment officer of Brooks McDonald. “Expectations were very low at the end of last week.”

“There is certainly a risk of a bout of volatility in the short term if negotiations are paused or appear to be heading in the wrong direction,” he added.

The benchmark S&P 500 index has fallen in four of the past five weeks.


Spencer Platt / Getty Images


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It fell 1.4% with the outbreak of Covid-19 in China Manufacturing disruption by a major supplier in Shenzhen City. Occidental Petroleum It fell 6.7%.

China’s Shanghai Composite fell 2.6% After Shenzhen went into lockdown to contain the coronavirus. In Europe, the Stoxx Europe 600 Index rose 0.9%, led by shares of automakers and banks.

The shutdown could hamper demand for oil, and Brent crude futures, the international benchmark, fell 5.6% to $103.19 a barrel. A week ago, Brent crude prices reached $139 a barrel, their highest since 2008, as the war in Ukraine disrupted global commodity markets.

Elsewhere in the commodity markets, nickel trading remained suspended on the London Metal Exchange, which halted the market last week to contain a Big price hike.

Investors are turning their attention to Federal Reserve monetary policy meetingwhich concludes on Wednesday. The central bank is expected to raise its benchmark interest rate for the first time since 2018 as officials look to cool demand and bring inflation under control. She navigates an extraordinarily complex environment of a tight job market, supply turmoil and, most recently, the war in Ukraine.

Despite hopes for negotiations, the Conflict is increasing There is growing concern among officials and investors that the war could spread beyond Ukraine. A Russian air strike on a Ukrainian military training center near the Polish border killed 35 people on Sunday. Russia has asked China for military equipment and other aid for its war effort, according to US officials.

Commodity prices are hot now. But the prices that investors pay in the open market for commodities like coffee, copper or corn have nothing to do with the price customers pay in the store. WSJ’s Dion Rabouin explains. Illustration: Adele Morgan

Write to Joe Wallace at

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