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Stocks were slammed Wednesday following Ukraine's declaration of a state of emergency, with the S&P 500 falling further into correction territory and the Dow closing less than 15 points from correction level.
President Biden announced that he will be imposing sanctions on the owner of the Nord Stream 2 pipeline connecting Russia and Germany, in response to Russian actions in Ukraine.
The move reverses a May 2021 decision to waive sanctions on the project, which was heavily criticized by Republicans. The sanctions will affect Nord Stream 2 AG and its CEO Matthis Warnig.
In a statement issued from the White House Wednesday afternoon, Biden referenced Germany’s recent announcement that it would halt the pipeline’s certification and thanked Chancellor Olaf Scholz for his cooperation in "holding Russia accountable" for its aggression.
The rapidly escalating tensions between Ukraine and Russia have cast fresh uncertainty on the Federal Reserve's policy outlook and could force central bank officials to take a more nimble approach as they begin raising interest rates for the first time in three years.
"Overly restrictive monetary policy could result in an outright policy error especially if the business cycle continues to deteriorate," JPMorgan Chase strategist Dubravko Lakos-Bujas wrote in an analyst note to clients this week. "At the same time, the Russia/Ukraine crisis could force a reassessment of the Fed tightening path resulting in central banks turning less hawkish, while policymakers may consider additional fiscal stimulus."
Ukraine has officially declared a 30-day state of emergency and is urging its citizens in Russia to flee as Kyiv prepares for a potential invasion by Russian forces. Ukraine has been hit by massive cyber attack per reports spooking investors and sending stocks lower.
The surge in spending on do-it-yourself home projects seen during the early stages of the pandemic has so far held up better than feared even as restrictions ease, while builders and handymen are upgrading their toolkits to complete a backlog of delayed projects.
The S&P 500 entered correction territory Tuesday, down 10% from its last peak, as investors weighed the conflict and fresh U.S. and U.K. sanctions on Russia. For the year, it's down over 9%. Continue reading
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