The S&P and the Dow Jones industrial average will declassify Russia as an emerging Market
Is it the end of the Russian economy and what does it mean for the European stock market and the global economy? An official representative of S&P Dow Jones announced on Monday morning that all listed Russian stocks would be removed from their benchmark. The decisions came after Biden announced that it would tighten the Russian economy in ways never before seen.
The stock market didn’t respond well to the announcement. The S&P dropped slightly by 0.85%, which put it in deep correction territory. On the first day of trading, both the S&P 500 and the Dow Jones Industrial Average fell. The Dow Jones industrials fell by 1%, which is estimated at 300 points.
Since the closing day and the opening day of the U.S stock market, major indexes have fallen and risen, including energy prices. On Saturday, oil prices set new highs estimated by
- The U.S. oil benchmark rose to $130 per barrel.
- WTI crude rose to $117 per barrel.
- Brent crude jumped to $139.13 per barrel.
Oil prices and energy prices are more likely to increase in the future.
Furthermore, gasoline prices in the United States are setting new high records, as evidenced by Californian gasoline prices. By Friday morning, it was discovered that Californians are the ones suffering the most from energy price increases. Prices in California rose to $5.18 per gallon, Plus, the stats show that gasoline increased by more than $4.9.
In 2021, the U.S. and Russian oil importers were estimated to be the largest single-year importers of oil in the world. But since the Russian invasion, the U.S. has stopped importing Russian oil. It’s more likely that more countries will follow the lead of the U.S. France, Germany, the U.S., and other countries are stooping to deal with Russia.
Just today, all publicly traded Russian stocks were delisted from the S&P 500 and Dow Jones industrials. As for the Russian economy, its currency, the Ruble, has fallen to its lowest level since, falling to less than $1. Meta, Twitter, PayPal, MasterCard, and major stock exchanges have all stated that they will not conduct any transactions or business with Russian clients.
Investors have major concerns about the current situation and its impact on the economy. As inflation surges and continues, this war could destroy our current economic system.
The Russian president, Vladimir Putin, has set his terms to stop the war and asked his peer, the Ukrainian president, to surrender to his terms. But the Ukrainian government still hopes that NATO and its allies will join their war and put a stop to Russian military operations. Since the Invasion, the Brent price has surged by 20%, and some forecasts indicate more surges in the future.
The U.S. believes that the solution will be to isolate Russia economically and politically until it stops its war. The White House will announce further sanctions this week while investors are still measuring their impact on the Wall Street index.
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