Markets Shaky As Putin Celebrates Victory Day
Stock markets and the major US indices are slipping as the trade week comes to a close, marking a rough week for the three gauges.
Friday, May 9, 2014 - 00:00
The leader of Russia was visiting his newly acquired parcel of land in Crimea, celebrating Victory Day as Russian State media tracked the leader's first visit since Russia annexed the region in March. Shortly before 10 a.m. in New York on May 9, the Nasdaq Composite moderately dipped 0.29 percent, an 11.9 point fall to 4,039.57; the Standard & Poor's 500 slightly fell 0.31 percent, a loss of 6.05 points to 1,869.26; and the Dow Jones Industrial Average edged down 0.23 percent, a 37.37 point fall to 16,513.60.
One chief investment officer pointed to a strong attraction to increased price earnings on biotech and tech firms, noting the reduced desire to take risks. "Investors fell in love with some stocks with very high P/Es, like biotech and tech companies," chief investment officer Richard Sichel told the media outlet on Friday. "Now there's a feeling of wanting to take less risk, which has investors scaling back on high flyers and taking some profit out. With earnings season winding down, it's becoming less of a stock picker's market."
Thus far this week, the Standard & Poor's 500 has dipped about 0.3 percent. The Nasdaq Composite, which is chock-full of technology firms, has dropped 1.8 percent this week, marking its worst performance in about four weeks. During the past five days, the Dow Jones Industrial Average has slumped about 4.8 percent.
Russian forces show might
While Russian warships partook in a naval display on the Black Sea, Russia President Vladimir Putin arrived by water in Crimea to mark the momentous occasion of completing the annexation of the region from Ukraine, CNN reported. While state television broadcast Putin and senior officers by his side, fighting continued between Ukraine security services and pro-Russian militants, which has shaken markets and imparted a modicum of edginess upon investors.
The parade, which also included a display of Russian air might, actually is a yearly function that first noted the victory over Nazi Germany. U.S. and western powers have levied sanctions against Russia, which threaten to push the nation toward recession. For that reason, Putin has been courting support for its Ukraine policy from another world power. Voice of America reported Putin leaves for China later this month in search of energy deals and increased diplomatic ties.
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