S&P500
Last week, the US stock market slumped due to the escalation of the Russia-Ukraine conflict.
Tensions over the crisis in Ukraine have been rising for the whole week. The number of shelling attacks in the eastern part of the country also spiked. Donetsk and Lugansk People's Republics announced a mass evacuation of civilians to Russia. On February 21, Russia recognized the DPR-LPR republics. Vladimir Putin sent military troops to ensure peace in the two regions.
Traders sighed with relief after the bloc and the United States did not impose tough sanctions against Russia for recognizing the DPR-LPR as independent regions. In fact, there will hardly be any sanctions. This factor may somehow influence long-term prospects. As for short-term ones, this is certainly bullish.
In the second half of the week, the US will unveil fresh inflation data. The report may show an increase in consumer prices to 7-7.5%. Investors are now pricing in a rate hike by 0.5% in March.
US stock indices weekly gains:
The Dow Jones traded in the range of 34,840 -34,080, losing 60 or 2%
The NASDAQ remained in the rage of 14,040 -13,550, shedding 490 or 3.5%
The S&P500 fluctuated in the range of 4,450 - 4,350. dropping by 100 or 2.5%
Outlook
The Dow Jones is likely to stay in the range of 33,800 - 34,600
The NASDAQ is excepted to trade in the range of 13,300 - 14,000
The S&P500 is projected to remain in the range of 4,300 - 4,450
Conclusion: Some analysts believe that the military conflict that scared off investors last week actually took place. The Kremlin did send troops into the territories for peacekeeping. Therefore, geopolitical tensions are likely to ease in the short term, allowing the stock market to recover.