Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Dow Jones Today Jumps as Ukraine Tensions Moderate

By Dan Dzombak - Mar 4, 2014 at 1:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

All 30 stocks in the Dow Jones Industrial Average are up today as Russia says it is not invading Ukraine.

The Dow Jones Industrial Average ( ^DJI 0.10% ) was up 220 points, to 16,388, at 1:30 p.m. EST as tensions appear to have moderated in Ukraine. The S&P 500 ( ^GSPC 0.31% ) was up 26 points to 1,872. Brent crude was down $1.98 to $109.22.

All 30 stocks in the Dow Jones are on the upswing as the cooling tensions in Ukraine let the market continue its rise. Perhaps given the international uproar and the weakening of the Russian ruble, President Vladimir Putin said today his nation is not invading Ukraine, but is just protecting Russians in Crimea, as well as its military assets there. The Crimea region of Ukraine is ethnically 58% Russian as it was given by the Soviet Union to the then-Soviet republic in 1954. Crimea, specifically the city of Sevastopol, is home to the Russian Black Sea fleet.

Putin has left open the possibility of action in Ukraine, saying that Russia will protect Russian-speaking citizens in the former Soviet state. Putin has also said of the change in government in Kiev: "It was an unconstitutional coup and an armed seizure of power that took place. No one argues with that."

The Russian Micex Index was up 5% on the news, though is still down 8% since the weekend. The ruble strengthened 1.3% against the dollar but has not made up the ground lost in yesterday's 2% drop. Russian majors Sberbank, Gazprom, and Yandex are all up today, though hey are still well below the weekend's level after yesterday's drops of more than 10%.

It will be interesting to track the fallout from this episode. The Russian central bank yesterday hiked short-term lending rates 1.5% and bought $10 billion in currency to try and moderate the flood of money out of Russia. While the markets are temporarily bouncing back I expect they will continue to fall as foreign investors realize the political risk they are taking investing in Russia.

What's an investor to do?
I hope that cooler minds will prevail and that the tensions in Ukraine will de-escalate. Until then, who knows where the stock market will go. The stock market has looked overvalued for some time, leading me to suggest it's a good time to build up some cash so you are able to invest when opportunities arise.

The Motley Fool has always taught that Foolish (capital "F") investors don't invest in the broad market. We invest in great companies at good prices, continue to educate ourselves, and hold on to our great companies over the long term. The market will fluctuate (sometimes massively), but great companies will win out over the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$35,754.75 (0.10%) $35.32
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$4,701.21 (0.31%) $14.46

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.