Stock futures rose ahead of Friday’s session following a report that talks could be gaining traction between Russia and Ukraine.
Reuters sent a brief report quoting Russian President Vladimir Putin saying that progress has been amde in the talks.
The report coincided with a sharp acceleration in stock futures, with the Dow Jones Industrial Average futures up about 400 points and the Nasdaq 100 jumping some 1.4%.
The moves came despite another day of higher energy prices as the Russia-Ukraine war showed little signs of letting up. West Texas Intermediate crude, the U.S. benchmark, rose 2.5% to $108.66 while international standard Brent crude moved 2.5% higher to $112.08.
Tensions continued to heat up on the Ukraine situation, with U.S. President Joe Biden expected to call for an end to Russia’s status as a preferred trade partner, according to a Bloomberg News report. Also, Congress passed a funding bill that includes $14 billion of Ukraine aid.
Shares of Rivian slipped more than 11% in extended trading after missing estimates for the fourth quarter on the top and bottom lines, while DocuSign sank 18% after issuing weak guidance for the first quarter and fiscal year.
The main event on the economic calendar Friday is the preliminary reading for the University of Michigan consumer confidence survey, expected to nudge higher to a reading of 62 from 61.7 in February.
Investors received more bad inflation news Thursday, as the Bureau of Labor Statistics reported that the consumer price index rose 7.9% in February, even more than expected and the highest level since January 1982. CPI gained month-over-month 0.8%, above estimates of 0.7% for the month, translating to a 0.8% decline in real average hourly earnings for workers.
Treasury Secretary Janet Yellen offered little consolation on the inflation front, telling CNBC that she expects price increases to be a fact of life in the U.S. for another year.
In trading Thursday, the Dow dipped 112.18 points to 33,174.07, after climbing more than 650 points in the previous session, while the S&P 500 shed 0.4%. The Nasdaq Composite, home to many of the market’s biggest tech names, dropped 1% to 13,129.96, led by losses from Apple and Meta Platforms.
Week to date, the Dow is down 1.31% and headed for its fifth negative week in a row since May 2019. Meanwhile, the S&P is down 1.60% and Nasdaq 1.38% this week.
The losses came as negotiations between Russia and Ukraine came to a halt without progress on a cease-fire or passage for civilians attempting to flee the city of Mariupol. The markets have fluctuated in recent weeks as investors weigh the fallout of the conflict between Russia and Ukraine.
“History from an investment point of view is on our side for the long-term,” Stephanie Link, Hightower’s chief investment strategist told CNBC’s “Closing Bell” on Thursday. “The market can recover, and I think eventually we will. We’ll have to see how long this goes but eventually, the market will recover.”
