Mixed earnings news caused the continued decline in the value of social media, cloud computing and biotechnology companies. The deteriorating situation in eastern Ukraine also influenced investor behavior as we head into the weekend.

Standard & Poor’s Rating Services cut Russia’s sovereign debt rating, citing the political and military tensions in Ukraine and the likelihood of more sanctions being imposed by the United States and European leaders.

The rating downgrade puts Russia’s creditworthiness at the lowest investment grade level—in line with that of Brazil and Azerbaijan. The announcement sent Russian equities and the ruble lower.

Despite the U.S. market’s downward trajectory, the consumer sentiment index, which offers a measure of consumers’ feelings about the economy, exceeded forecasts. The U.S. economy is dependent upon the consumer sector for most of its growth. If more Americans are feeling upbeat about the economy, that can bode well for the market’s performance during the remainder of the year.

The Dow Jones Industrial Average dropped 140 points to 16,361. The S&P 500 Stock-Index fell 15 points to 1,863.

“Market Matters” is a Ketchum Keystone commentary column by Suzanne Hazlett, a CERTIFIED FINANCIAL PLANNER™ and president of the independent firm, BOULDER financial alliance llc, based in Ketchum. 

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