Russia-Ukraine War Erupted And Inflation Worsened But Outlook Drove Stocks Higher For The Week
Published Friday, February 25, 2022 at: 8:54 PM EST
Russia declared war on Ukraine on Thursday. Initially, the first war in Europe since World War II, sent stock prices plunging. For the second time in four weeks, the Standard & Poor’s 500 stock index declined by about -10% from its January 3rd all-time closing high.
Meanwhile, in other news inflation worsened. Data released Friday showed the buying power of Americans shrank, with buying power eroded at the worst 12-month rate in about 40 years. Real disposable personal income per capita plunged -10.1% in the 12 months through January 31, 2022.
Despite the Russian invasion of Ukraine and worsening inflation numbers, the stock market closed Friday eight-tenths of 1% higher than a week ago.
Why? Because the economy and earnings outlook remains bright. Neither the Russian-Ukraine War nor the high inflation rate dim the forecast for the U.S. economy.
The Standard & Poor’s 500 stock index closed Friday, February 25, 2022, at 4,384.65. The stock index gained +2.24% from Thursday and +0.81% from last week. In the 23 months since the March 23, 2020, bear market low, stocks are up +64.85%.
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This article was written by a professional financial journalist for Forbes Financial Planning, Inc and is not intended as legal or investment advice.