FX.co ★ US stock market update for February 16, 2022

The US stock market closed in the "green zone" on Tuesday. All major indexes and stocks of large companies rose by the end of trading. This event can be connected to the signs of improvement in the geopolitical situation in Ukraine. The markets reacted positively to the news about a possible de-escalation of the conflict, but we believe that it's too early to rejoice. All parties included here want to avoid war, so progress is required in the negotiations. There should be concrete decisions taken at the highest level to talk about de-escalation. So far, we can only say that the conflict is "paused" and nothing more. Thus, it's too early to be happy.

NASDAQ Composite Index

The NASDAQ Composite index soared to 14603 yesterday, but the corrective set of waves continues to form. It can be recalled that stock indices are under pressure not only because of the geopolitical conflict in Ukraine but also due to the possible increase in the US interest rates throughout 2022.

Standard & Poor's 500 index

On Tuesday, the Standard & Poor's 500 index increased by 67 points and close at 4465. Two failed attempts to break through the level of 4586, which corresponds to 200.0% on the upper Fibonacci grid, led to the instrument's new sales, which are likely to continue in the coming weeks. The closer March 15-16, when the Fed holds its next scheduled meeting, at which the interest rate is 100% likely to be raised, the more pressure the stock market may feel.

Dow Jones index

The Dow Jones index suffers the least from geopolitical upheavals and strengthening panic around the Fed's interest rate hike. On Tuesday, it rose to the level of 34944 points and remains close to its high (36948), reached on January 5, 2022. It shows that this index has built the weakest corrective wave structure so far.

Tesla

Tesla shares also surged by $25, making a successful attempt to break through the level of $891. New sales of the company's shares are canceled for now, but everything will depend on progress in negotiations regarding the Ukrainian conflict. If the situation worsens, then the stock market can take this news very painfully.

Microsoft

Microsoft stock may further fall after failing to break through the level of $314, which equates to 50.0% Fibonacci. The nearest target is $280. Yesterday is just a temporary respite for the market. There may be news every day that will either help stocks and indices recover or cause them to drop. The news background is currently very important.

Apple

Apple shares are doing just fine amid the impending crisis. Their price rose by almost $ 4 yesterday and now stands at $172. Nevertheless, a descending set of waves is forming, so we believe that the decline is not yet over.

Oil

Oil is the only instrument supported by geopolitical concerns. Its price declined to $92 per barrel on the news of a possible de-escalation of the war. However, it is too early to talk about the end of the upward set of waves.