Markets Gyrate as Russian Forces Up the Ante

Stocks dip as refuges, such as Treasuries and gold, rise.

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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