The market fell on Monday with the Dow down by 400 points, in the wake of a fresh round Western sanctions struck Russia’s financial markets, though the market’s losses were tempered due to reports that Russian and Ukrainian officials are gathering to discuss an possible resolution to the conflict even while Russian troops continue to wage an offensive on the capital city of Kyiv.

KEY FACTS

Stocks dropped sharply during the open: The Dow Jones Industrial Average was down 1.2 percent, about 400 points while the S&P 500 lost 1.1% and the Nasdaq’s tech-focused Composite almost 1%.

The price of energy jumped yet again on Monday and Brent crude rising more than three percent, to over $100 per barrel. experts warn that prices could go higher in the wake of the conflict.

The Russian ruble plunged as high as 30 percent over the U.S. dollar on Monday amid the latest round of Western sanctions, while the Moscow exchange was closed to trade. Russia’s central bank has more than doubled its interest rates up to 20%.

The move comes after the latest cycle of Western sanctions that have hit Russia’s economy hard: In the United States, United States joined European allies on Saturday in removing Russian banks from the interbank messaging system, SWIFT, which connects more than 11,000 financial institutions spread across over 200 countries.

Though stocks were moving lower on Monday, sentiment among investors did get a slight boost by news reports about Russian and Ukrainian officials are gathering near the border in order to discuss an agreement to end the conflict.

Despite the fact that officials have met for talks, Russia has continued the assault on Ukraine as it entered the country’s second-largest city during the week (though Ukrainian troops have put more effort than was expected and continue to hold Kyiv as Kyiv as the capital. Kyiv).

CRUCIAL QUOTE:

“Putin’s campaign against Ukraine is proving to be a huge mistake for his country since his military is unable to seize major cities, while the international community reacts with a devastating array of financial counterattacks” claims Vital Knowledge founder Adam Crisafulli. As stocks take an affliction from the ongoing war, “investors will obviously be watching very closely” for any updates on the talks with Russia as well as Ukraine.

KEY BACKGROUND:

Markets have experienced volatile trading in recent weeks due to tensions between Russia and Ukraine increased, culminating in Russian the president Vladimir Putin officially launching his invasion of Ukraine last Thursday. Stocks rebounded strongly on Friday–with the Dow rising by 800 points, its best day since late 2020–as reports first came out concerning Russia declaring it was willing to discuss talks with Ukraine.

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