After Thursday’s sharp fall and rebound stocks rose slightly in early morning trading recovering terrain lost after Russia’s invasion of Ukraine. The recovery was led by tech stocks with stocks which did well during the first two months of the year suffering and those which had done badly improving, leaving analysts somewhat mystified.
Stocks tuned on a pin Thursday morning after losing more than 7% recovering all losses by the end of the day.
Stocks are down approximately 10% from their record Christmas 2021 high with inflation at record levels. An important factor in market dynamics has been the prospect of Fed rate hikes in March to combat inflation reaching 7% in January.
Analysts have suggested that the Ukraine invasion and the ensuing upward pressure on oil prices could result in slower economic growth, diminishing incentives for the US Federal reserve to raise interest rates.