Russia’s invasion of Ukraine has led to swift and significant responses from financial markets, commodity markets and numerous governmental bodies. And the push to take control of the country continues.
Equities fell sharply on the week and closed below their January lows. The S&P 500 ended the week down 5.6%. The NASDAQ has been lower for five consecutive days and recorded a 7.7% decline.
We saw a significant increase in prices in January. The Consumer Price Index (CPI) was up 7.5% year-over-year. Over the month, CPI was up 0.6% from December. Increases in food, electricity and shelter were the largest contributors to the rise in prices.
Equities recouped early losses in the week to end mostly in the green. The S&P 500 was down fractionally, but the NASDAQ was up 0.5%. Small caps outperformed with a gain of 2.7% and emerging markets also fared well with a 2.2% advance.
The U.S. economy, as measured by Gross Domestic Product (GDP), grew by 6.9% in the fourth quarter over the previous quarter. The growth in GDP was led by increases in private inventory investment, exports, personal consumption expenditure and nonresidential fixed investment.