Photo Courtesy MGN
By Eva Windler
Stocks sunk globally when Russia attacked Ukraine Thursday. In Wall Street, futures project a 2.5% drop in the S&P 500. Technology stocks in the United states in particular have taken a large fall from November. Global bank stocks are plummeting. Moscow’s stock market is experiencing a complete collapse, and the ruble to dollar ratio dropped to an all-time low with rising inflation.
Commodities are also receiving a blow. Prices for oil have shot upward, with the global benchmark rising 8%. The conflict could cause issues with wheat and grain distribution, particularly for the Middle East and Africa. Europe depends on resources from Russia for much of its energy. It is unknown whether Russia’s attack will affect supply lines. Putin might choose to cut off supplies if other countries retaliate against the invasion.
The United States is not dependent on Russia for any supplies, but disruptions from the warfront might cause inflated prices for supplies in demand. The Federal Reserve is planning to raise interest rates to combat inflation. Slowing spending could help with the balance between supply and demand. However, it may dampen an already unstable market’s growth and lengthen the downturn of the economy.