The Russian invasion of Ukraine caused a tumultuous day on Wall Street as stocks took a dive before major indexes recovered to positive territory, buoyed by investors buying the dip on tech stocks and gains in defense stocks amid the upheaval.
The Dow Jones dropped 800 points before clawing back to close up 92 points, or 0.3%, while the S&P 500 and the Nasdaq 100 recovered enough ground to finish up 1.5% and 3.4%, respectively.
The Brent Crude oil index, a global benchmark, reached $105 per barrel by early Thursday before finishing the day 2.3% higher, or $99.08. It last traded above $100 per barrel in 2014.
European markets tumbled around 3%, with Germany’s performing the worst with a 4% slide, while Asian markets saw drops from 1% to 3%.
Russia’s markets had to suspend trading as stocks plunged as much as 45% before closing 33% down, and the ruble dropped to a record low against the dollar.
Kremlin spokesman Dmitry Peskov said the “emotional” reaction within the markets was inevitable but that the country had tools to stabilize the situation.
The economic shocks rippled around the globe after Russia early Thursday launched a massive, coordinated attack on Ukraine. Russian jets hit major Ukrainian cities and ground forces crossed into Ukrainian territory on multiple fronts.
Indexes plummeted as investors awoke to news of the attack but tech companies like Amazon and Netflix traded higher by the end of the day and defense contractors like Lockheed Martin and Raytheon Technologies saw gains.
Mr. Biden took a victory lap over Russia feeling the economic pain.“We’ve already seen the impact of our actions on Russia’s currency and the ruble, which earlier today hit its weakest level ever, ever in history. The Russian stock market plunged today. Russian government borrowing rates spiked by over 15%,” Mr. Biden said when announcing a new round of sanctions on Russia.
Congressional lawmakers weighed in during Russia’s assault, with some drafting ways to hold Moscow accountable and others highlighting the role of energy markets in the unfolding crisis.
“During this moment of crisis, the United States should work to dramatically ramp up energy production to strengthen our allies and to cut off the flow of money into Putin’s war machine,” said Sen. James Lankford, Oklahoma Republican. “Every dollar paid for Russian energy is a dollar they will use to murder their Ukrainian neighbors. America must lead the world by increasing our production of energy to decrease reliance on Russian exports. Russia’s economy is heavily dependent on energy sales, we should make sure that immediately dries up.”
Germany this week halted the Nord Stream 2 pipeline that would have dramatically increased the flow of Russian gas to Europe. It was the first major sign that Russian aggression would result in difficult economic tradeoffs for countries that rely on Russian resources.
“Welcome to a new world where Europeans will soon pay 2,000 euros for a thousand cubic meters of gas!” tweeted former Russian President Dmitry Medvedev, who is deputy chairman of the Security Council of Russia.
European Commission President Ursula von der Leyen said Thursday the E.U. would ensure that Russia is the one that pays a hefty price.
“Russia’s economy has already faced intensified pressure. These pressures will now accumulate,” she tweeted. “Our measures will weaken Russia’s technological position in key areas, from which the elite makes most of their money.”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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