In a significant development, Ukraine has expressed its readiness to negotiate for peace, potentially bringing an end to the ongoing conflict. This announcement comes at a tumultuous time for global markets, which have experienced notable declines. On Wednesday, major US indices saw substantial losses, with the S&P closing at 5778, down 71 points, and the Dow losing 670 points or 1.5%. These declines reflect broader market apprehensions as various economic factors interplay on the global stage.
The Nasdaq and Russell 2000 also felt the impact of market volatility, with the Nasdaq down 65 points or 0.4% and the Russell sliding 22 points or 1%. Meanwhile, the Transports sector experienced a significant drop, losing 323 points or 2%. The Equal Weight S&P was not spared either, falling by 80 points or 1.1%. Additionally, the Mag 7 index registered a loss of 162 points or 0.7%. Amidst these declines, oil prices continued their downward trajectory, dropping $2 to settle at $66.98 per barrel.
Contributing to the decline in oil prices is Saudi Arabia's plan to ramp up production next month. This move is anticipated to increase global supply and drive energy prices even lower. Meanwhile, the VIX index continues to surge, indicating heightened market volatility and investor unease.
The currency markets also reacted to these developments. The US Dollar faced pressures, helping push the currency pair higher ahead of the release of February's ISM Services PMI data. In contrast, the EUR/USD pair maintained strong daily gains, trading near 1.0700 during the American session on Wednesday.
Despite these challenges, US futures showed signs of recovery, entering a rally mode. The Dow futures rose by 225 points, while the S&P futures climbed by 33 points. The Nasdaq futures saw an increase of 142 points, and the Russell futures gained 26 points.