Russia orders troops to eastern Ukraine
U.S. stock markets look set to drop at the open following a long weekend and as traders continue to access Russia-Ukraine tensions.
Russian President Vladimir Putin on Monday ordered troops into two separatist territories in eastern Ukraine, just hours after formally recognizing them as independent states.
Putin said the troops will enter the territories to “maintain peace,” a dramatic escalation in a conflict that is threatening a full-blown war.
The U.S. and its European allies have warned that Russia may be looking for a false excuse to invade its neighbor.
Russia has deployed more than 100,000 troops nears its border with Ukraine. Last week, President Joe Biden confirmed reports that U.S. intelligence officials are warning of an imminent Russian invasion of Ukraine.
As of 5:10 a.m. ET, futures tied to the Dow Jones plunged 361 points, or 1.06% to $33,646. S&P 500 futures tumbled 52.25 points, or 1.2% to 4,291.25 while the tech-heavy Nasdaq 100 futures shed 272 points, or 1.94% to 13,724.
Wall Street remained closed on Monday in observance of the President’s Day public holiday.
Crude futures spike on fears of supply disruptions
In energy markets, crude futures jumped higher early Tuesday over rising tensions in Eastern Europe after Putin ordered Russian troops into two Moscow-backed separatist regions in Ukraine, triggering fears that the decision may lead to new sanctions on Russia.
At around 5:10 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were up $4.29, or 4.76% to $94.5 a barrel. Global Brent crude futures were at $96.14, up $3.15, or 3.39% a barrel.
Crude traders fear that should the between Russia and Ukraine escalate, the market will be vulnerable to supply disruptions which would send prices higher.
SoFi to acquire Technisys for roughly $1.1 billion
On the M&A front, SoFi Technologies (NASDAQ: SOFI) is buying Miami financial technology firm Technisys SA in an all-stock deal valued at $1.1 billion, according to the Wall Street Journal.
The deal is equivalent to about 10% of SoFi’s total market value. It gives SoFi control of own core-banking platform, the back-end technology that is used by banks to power mobile-banking apps, keep track of customer deposits and open accounts.
Technisys has fintech and banking customers – including TABbank, Rellevate, and HSBC – across 16 countries.
SoFi went public made its market debut in 2021 via merger with a special purpose acquisition company run by venture capitalist Chamath Palihapitiya.
