February 23, 2022
Good morning,
By the time the market closed yesterday, the S&P 500 Index had lost another 1%, but it was much higher than that and much lower than that over the course of the day’s session. There is a lot of indecision out there. There is just too much uncertainty to discount, and while traders try, investors are sitting back and waiting for some clarity that might take some uncertainty off the table.
European equities are up today, all but erasing this week’s declines (no holiday for them). From London: “U.S. sanctions on Russia were less severe than feared, the market is cautiously optimistic” (FT) “If we do not see further escalation and sanctions remain muted, we could see a snap-back rally” (Bloomberg-London). All this to give you a sense of what traders are thinking this morning.
U.S. Futures are up 75 basis points (+.75%), a bounce rally today is not totally unexpected. That said, there is little to suggest that the stock market is out of the woods yet, or that the worst is behind us. There is every reason to believe that investors will still wait for the path Russia takes in the Ukraine, and the sanctions tolled against them, to become a little clearer.
See you tomorrow. Be well,
Mike