5 things to know before the stock market opens on Monday February 28
Here are the most important news, trends and analysis that investors need to start their trading day:
1. Stock futures fall after new sanctions on Russia for invading Ukraine
A trader works at the New York Stock Exchange in New York, the United States, February 25, 2022.
Wang Yin | Xinhua News Agency | Getty Images
U.S. stock futures fell on Monday but fell to earlier lows on the last day of February after the Biden administration announced additional sanctions against the Russian central bank following the unprovoked invasion of the Ukraine by Moscow. On Saturday, the United States, European allies and Canada agreed to cut major Russian banks from the SWIFT interbank messaging system. Wall Street mounted a strong rally on Friday, with the Dow Jones Industrial Average having its best day since November 2020. In a week of wild market swings, the Dow Jones fell slightly as the S&P 500 and Nasdaq ended in rise.
2. The United States targets the Russian central bank and Russian banks
Central Bank of Russia in Moscow.
Gavriil Grigorov | CASS | Getty Images
Monday’s new White House actions effectively ban Americans from doing business with Russia’s central bank and freeze its assets in the United States. The weekend’s coordinated decision to block Russian banks from SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunications, means they will not be able to communicate securely with banks beyond their borders.
3. Oil prices rise on concerns about energy supplies
Oil pumping jacks, also known as “nodding donkeys”, at a Rosneft Oil Co. oilfield near the village of Sokolovka in Russia’s Udmurt Republic on Friday, November 20 2020.
Bloomberg | Bloomberg | Getty Images
Oil prices rose on Monday but rose earlier after the SWIFT banking ban raised fears that energy supplies could be indirectly affected. West Texas Intermediate crude, the US benchmark, rose more than 3% to around $95 a barrel. Brent, the international benchmark, advanced more than 2% to around $100 a barrel. British energy giant BP announced on Sunday that it was offloading its 19.75% stake in Rosneft, a Russian-controlled oil company. Russia is a major supplier of oil and natural gas, especially to Europe.
4. Ruble reservoirs and the stock market of Russia were closed
A woman walks past a sign showing the exchange rates of the US dollar and euro against the Russian ruble in Moscow on February 22, 2022.
Dimitar Dilkoff | AFP | Getty Images
In the face of mounting international sanctions, Russia’s currency, the ruble, plummeted 30% on Monday. The Russian central bank raised its key rate to 20% on Monday from 9.5% in an emergency measure aimed at stemming the fall of the ruble. The Russian central bank and the Ministry of Finance have jointly ordered Russian exporting companies to sell 80% of their foreign currency earnings. The Russian stock exchange was closed on Monday. The Russian equity ETF fell 23% pre-market.
5. Ukraine and Russia start talks as fighting rages
Ukrainian soldiers examine a destroyed Russian infantry vehicle on February 27, 2022.
Sergei Bobok | AFP | Getty Images
The economic fallout in Russia came as fighting in Ukraine showed no signs of abating and Russian President Vladimir Putin had put nuclear forces on high alert. Ukraine began talks near the Belarusian border with Russia on Monday in hopes of reaching a ceasefire. While Ukraine sent its defense minister and other senior officials, the Russian delegation was led by Putin’s cultural adviser, an unlikely envoy to end the war and a sign of how Moscow considering the talks.
— The Associated Press and Reuters contributed to this report. Register now for CNBC Investing Club to follow all the details of Jim Cramer stock market movement. Follow the evolution of the market like a pro on CNBC Pro.