Why Stocks Rebounded After Russia Invaded Ukraine

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It looks like traders are judging that Ukraine won’t be that bad for Wall Street for now, but expect markets to keep swinging about as reality intrudes, says columnist jmackin2

Conflicts like Russia’s invasion of Ukraine have historically sent stock prices lower and boosted the value of certain commodities. WSJ’s Dion Rabouin explains the investor psychology that's moving markets. Photo: Justin Lane/EPA-EFE/ShutterstockRussia invaded Ukraine to start the biggest land war in Europe since Hitler. U.S. stocks soared. What gives?

It isn’t that Wall Street secretly loves Vladimir Putin. A close look at the market’s performance on Thursday shows the reality: U.S. equities had a near-perfect reverse of what had been going on this year. It was a great stock-market switcheroo.

 

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