Markets Gyrate as Russian Forces Up the Ante

Stocks dip as refuges, such as Treasuries and gold, rise.
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As Russia’s war of conquest intensifies, stocks opened lower Tuesday and the usual refuge investments gained.

A huge follow-on Russian force is nearing Ukraine’s capital, Kyiv, in an evident bid to turn around Moscow’s bogged-down invasion of the country. Military analysts say that the Russians originally figured they could take over Ukraine in two days with a blitzkrieg attack. But the Ukrainians’ tenacious resistance has thwarted a quick victory. So, the Russian military is bringing in reinforcements and stepping up its assault, launching rocket bombardments on residential areas of Kharkiv, Ukraine’s second-largest city.

In the U.S., stocks opened lower, with the S&P 500 down 0.33%. Meanwhile, gold advanced 1.27% and Bitcoin, which sometimes is used as a refuge investment, jumped 8.6%.

In the meantime, the benchmark 10-year Treasury’s yield fell to 1.75%, as investors bid up the price of U.S. government bonds (price moves in the opposite direction of yields). As of Friday, the 10-year yield topped 2%. And oil, which may see its supply crimped due to the war, topped $100 per barrel amid the scarcity fears.

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