By Sam Boughedda
Investing.com – Inflation fears returned to the stock market on Thursday, as investors weighed rising prices for fuel and other commodities amid the escalating crisis in Ukraine.
Russia continued to step up its attacks on its neighbor as the U.S. added more oligarchs and Russian officials to a sanctions list, threatening to seize the luxury yachts and other property of these individuals and their families. It also imposed a travel ban on nearly two dozen individuals to the U.S.
Tech stocks and other growth stocks weighed on the indexes, which were negative with a half-hour of trading left in the session. Oil prices shot up to levels not seen in the last decade, as the international benchmark Brent crude reached nearly $120 a barrel.
Russian President Vladimir Putin told French President Emmanuel Macron that Russia would achieve the goals of its military intervention, Reuters reported.
Federal Reserve Chairman Jerome Powell returned to Capitol Hill on Thursday to deliver the second day of his semiannual report to lawmakers, this time in the Senate. On Wednesday he told House members he was inclined to raise interest rates by a quarter-point when the central bank holds its policy meeting later this month.
Here are three things that could affect markets tomorrow:
1. Crude oil
U.S. oil prices hit their highest level since the 2008 financial crisis, as the mother lode of sanctions on Russia for its invasion of Ukraine sent energy prices skyrocketing for a third straight day.
U.S. crude’s West Texas Intermediate, or Crude Oil WTI Futures, benchmark reached an intraday high of $116.50. Analysts will be watching to see how much extra sanctions and the possibility of a new agreement that would allow Iran to export again affect the near-term price.
2. Rivian about-face
Earlier this week, electric vehicle maker Rivian Automotive Inc (NASDAQ:RIVN) said it was raising prices because of its own rising costs, and that did not sit well with the people who were on the preorder list. On Thursday, Rivian issued a mea culpa and reversed its decision.
But the shares continued to fall, even after Wednesday’s 13% drop. Analysts will be watching for signs investors have shaken off the blip.
3. Jobs, jobs, jobs
Friday will bring the closely-watched jobs report from the government, which is expected to show continued strengthening in the labor market for February. It is a key gauge the Fed uses when considering whether and how much to change rates to respond to economic conditions. The data are released at 8:30 AM ET.
On Thursday the weekly job claims report showed applications for unemployment insurance fell by more than forecast to the lowest level since the start of the year.
–Investing.com staff and Reuters contributed to this report