The market fears the monkeypox economic effects. Consumer confidence fell by 0.9%, and the EU approved sending weapons to Ukraine.
U.S. stocks rose today as fears of soaring energy prices and inflation increased among investors. As for the recent update about the Ukrainian war, the U.S. in its last statement confirmed that about 20 nations had agreed to support the Ukrainian army with weapons. Finland and Sweden might see tension with Russia increase due to disagreement and showing their support for the Ukraine cause. But the true conflict here between Russia and the two nations is that Finland and Sweden are both in serious talks to join NATO. That was the main reason why Russia started its military operation in Ukraine. The attacks were hard on Ukraine and damaging in many areas.
The world had noticed the Ukrainian army’s shift from a defensive to an offensive posture in the previous two weeks. Yet the impact of the war was clear on the U.S. companies and the global economy.
The soaring prices of energy and materials were such a drag on US stocks. Given the fact that the consumer index was 8.3% higher than last year, it’s not surprising that the cost of funding the company’s finances was higher.
To fund their investment and overseas activities, the borrowing rate increased in April, and it’s expected to increase by 10% in May or June. The Nasdaq has dropped more than 30% in the last seven weeks, and the S&P has officially entered a bear market.
Moving to the U.S companies’ economic activities, the Equipment Leasing and Finance association conducted a survey of 25 participants, including banks and companies. The survey results were expected to be slightly concerning, given that economic activity for $1 trillion in equipment finance fell by 0.9%.On top of that, confidence indeed rose from 56.1 to 49 in April.
Nonetheless, despite the ELFA report, U.S stocks opened higher on Monday morning and remained there until the evening trading hour. By 4 p.m, New York time, the S&P 500 was up 1.86%, the Nasdaq composite was up 1.59%, and the Dow Jones was up 1.88%.
However, some economists are concerned about the impact of the new monkeypox rising crisis. There are a dozen cases in Europe. Belgium has already made a mandatory 21-day quarantine, and the U.S confirmed 2 positive cases by today.
The COVID outbreak is still hitting with large numbers, but the number isn’t that high compared to last year’s cases. Economists fear the European lockdown and its long-term effect on energy prices, supply chains, and bond rates.
As for the monkeypox disease, there have been few cases in recent years, but the fast surges in its number are a matter of concern. Experts fear that the disease will increase, especially among men, since it has been proven that it is transferred by sex and between gay men.
The CDC warns that this disease will spread among gay men and bisexuals, and the effect are somehow dangerous and could be lethal in extreme cases.