How the Russian Invasion of Ukraine has affected Markets

03:17 PM EST. – 02/25/2022

It’s commonly been observed that markets weaken as wars draw near, and strengthen before they end. We’ve seen the fall of the process within the recent invasion of Ukraine from Russian Federation. This past Tuesday, US Stocks took a dive, with the S&P 500 dropping a whole percentage point. The S&P 500 recovered going into Friday however, and is currently trading around $4,368.00 Wall Street calling this drop a correction move in light of the conflict in Eastern Europe. Actions carried out from the Russian President, Vladimir Putin have shaken not only stock markets, but bond and commodity markets around the world. The worsening conflict has also shifted the value of mutual funds and exchange-traded funds in tens of millions of retirement accounts, even those that have never invested in oil, gas, or other commodities. Due to President Biden’s decision to not re-open the Keystone Pipeline in light of rising gas and oil prices, energy costs are expected to continue rising. Crude Oil stood at a price of $52.20 on January 23, 2021 and today it trades around $92.00 after surging over $100.00 a barrel earlier this week. Market experts predict that most long-term investors will be able to survive this crisis, but day traders may need to take losses in order to preserve their portfolios.

On Thursday, 02/24 GOLD prices surged into the range of $1973.00 per Oz after falling and continuing to fall back to the $1890.00 range. The shiny metal seems to be finding support around this range, and this surge can be foreseen as a movement yet to come as inflation rises in the United States and uncertainty around the world remains more a reality now than ever before. A rise on the Daily chart holding above $1997.00 an Oz could signify a long term movement to the upside for GOLD. Cryptocurrencies also took a hit in light of the Russian invasion of Ukraine. Market caps for all cryptocurrencies dropped by $200 billion following the invasion, a drop of over 12% in a 24-hour span. The second-largest crypto market cap in the world, Ethereum is down over 12% on 02/24, and 22% over the last week. Ethereum is currently trading around $2700.00. Solana (SOL), Cardano (ADA), and Ripple (XRP) have also faced significant drops over the last 48 hours with Solana down 10%, Cardano down 17%, and XRP down 13%.