Traders based on the NYSE, February 28, 2022
Equity futures rose on Tuesday night as oil prices rose amid the ongoing conflict between Russia and Ukraine.
Dow Jones Industrial Average futures rose 94 points, or 0.2%. The futures of the S&P 500 and Nasdaq 100 also added 0.2%.
Profits increased several shares in expanded trading. Nordstrom jumped more than 35% due to strong gains, while SoFi grew by about 20%.
In regular trading, the Dow fell 597 points, or 1.76%. The S&P 500 lost 1.55% and the Nasdaq Composite fell 1.59%.
Energy prices rose on Tuesday as Russia continued its attack on Ukraine. West Texas Intermediate crude futures fell above $ 107 a barrel on Tuesday night, hitting a seven-year high.
“This dramatic dislocation is due to a flight to safety, where US production is seen as more reliable than other global sources,” said Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, of the WTI jump. “However, this is unlikely to continue once the situation in Ukraine stabilizes.”
Investors are watching closely for oil prices, which could trigger inflation, stifle the economy and create challenges for the Federal Reserve in policy-making.
Energy stocks were high on the market on Tuesday as bank stocks took a hit, dragged down by a sharp drop in government securities yields, in a rush to secure bonds amid stock market turmoil.
The 10-year reference fell below 1.7% on several points during Tuesday’s session.
Fed Chairman Jerome Powell will testify before Congress on Wednesday to give a six-month monetary policy update. With fears of a Russian invasion of Ukraine causing a turmoil in the financial world, Wall Street has quietly lowered its expectations for Fed action.
Powell now has the task of telling Congress this week that the central bank will do more to control inflation at a time when markets expect it to do less.
Investors are also looking forward to ADP’s employment figures, due out Wednesday, as well as mortgage application numbers.
President Joe Biden will deliver his first address on the state of the Union on Tuesday night. Investors may be listening to updates on its economic agenda, although the global response to the conflict in Ukraine is likely to dominate instead.
The earnings season continues, with several technology companies reporting on Wednesday. Okta, Pure Storage and C3 AI will report after the market closes. ChargePoint should also report after the bell.