Dow is expected to open 130 points lower a day after markets marked a historic recovery: gas prices are rising by three cents a day as Russia’s invasion shakes global oil markets
- Major US stock indexes were set for a weaker opening on Friday
- Markets rose sharply on Thursday after Biden refused to sanction Russian oil
- Oil prices fell from their highs, but gas prices still soared
- Gasoline averaged $ 3,572 on Friday, at 3 cents a day and 25 cents a month
US stock indexes were set for a weaker opening on Friday, a day after a dramatic late rally, as events surrounding a raging war in Ukraine keep investors on edge.
At 7:43 a.m., Dow futures fell 133 points, or 0.40 percent, S&P 500 futures fell 0.37 percent and Nasdaq futures lost 0.26 percent.
Although oil prices fell from their highest levels as fears of a ban on Russian crude oil imports fell, the average national price of gasoline jumped three cents on Friday to $ 3,572, according to the AAA gas price index.
In Thursday, Dow organized one of its biggest returns so far, swinging nearly 7 percent from the lowest point to the peak of the biggest turn in the day since March 2020.
Russia’s unprovoked invasion of Ukraine has shaken global markets, but investors have been relieved to learn that President Joe Biden’s retaliatory sanctions are not aimed at Russian oil and gas, which account for 7 percent of foreign oil imports to the United States.
The average national gasoline price jumped three cents on Friday to $ 3,572, according to the AAA gas price index
On Thursday, the Dow made one of its biggest returns to date, shifting nearly 7 percent from a low to a high in the biggest turnaround of the day in March 2020.
The United States, the European Union and some other countries responded to Moscow’s invasion of Ukraine with a wave of sanctions on Thursday, hampering Russia’s ability to do business in major currencies.
The coordinated response, softer than many investors feared, helped ease risk-reducing sentiment in the previous session, with Wall Street finishing sharply higher, driven by Nasdaq’s 3% gain after a weak opening.
“It is too early to assume that sanctions will force Russia to back down or that any other nation will not intervene,” said Haralambos Pisuros, head of research at JFD Group.
“In this way, we prefer to treat yesterday’s recovery of risky assets as a corrective rebound and see a decent chance for another stage in the south.”
Morgan Stanley and Microsoft Corp fell about 1% each in pre-market trading, leading to losses among big banks and megacap names.
Chevron gas station shows gasoline prices per gallon in Los Angeles on Wednesday
Oil companies Exxon Mobil and Chevron Corp fell about 0.7 percent, tracking crude oil prices.
Shares of Lockheed Martin Corp, Northrop Grumman Corp and L3Harris Technologies Inc rose more than 1%.
Fortinet and Palantir’s cybersecurity shares, which rose double-digit on Thursday amid fears of a Russian cyberattack, fell less than 1% in preliminary markets.
All major indexes followed their third consecutive weekly decline, as escalating geopolitical tensions were a double blow for investors who are already worried about aggressive plans to tighten Federal Reserve policy.
Indications for the main PCE price index, durable goods and consumer sentiment data for January are expected later in the day.
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