Weekend brief: Trump waives Russia sanctions, Nasdaq 100 closed down 5.5% on the week, Brent $109.86
Markets are shut until Sunday evening. Friday's close, a White House waiver of new Russia sanctions, oil near $110 on Hormuz attacks, and the calendar into the October 28 Fed decision.
The biggest new headline of the weekend is political, with an energy edge. Late Friday President Trump signed an order waiving two core parts of the Graham Act, the Russia sanctions law enacted last month, two days before its implementation deadline, CNBC reported. Stock markets are closed until futures reopen at 6 PM ET Sunday, so every market figure below is as of Friday.
What the waiver does
According to CNBC, the law required duties of up to 500% on Russian goods imported into the U.S. and tariffs of up to 100% on countries among the top five buyers of Russian crude oil or gas. Trump's order waives both provisions on national-interest grounds. CNBC said earlier executive-order sanctions on Russia stay in place, and that the move follows a separate easing last week on Russian diesel exports through April 2027, meant to ease a fuel supply crunch tied to the war in Iran.
Reaction split along predictable lines. Russian envoy Kirill Dmitriev called the suspension a "historic moment," while Sen. Richard Blumenthal, a Democrat who drafted the law, condemned it. Ukrainian President Zelenskyy warned that the diesel deal could set a precedent for more sanctions relief. For markets the link is energy: the waiver removes a threatened penalty on buyers of Russian oil and gas at a time when Brent is near $110.
Friday's close
| As of Friday, Oct. 16 | Level | Day |
|---|---|---|
| S&P 500 | 7,659.44 | -1.09% |
| Nasdaq 100 | 29,187.55 | -2.50% |
| Dow Jones Industrial Average | 52,002.41 | -0.34% |
| Russell 2000 | 2,721.37 | -1.66% |
| Brent crude (settle) | $109.86 | +3.7% |
| WTI crude (settle) | $101.41 | +3.5% |
| 10-year Treasury yield | 5.09% | from 5.10% |
Index closes are from Yahoo Finance as recorded in our Friday close story; oil settlements are from CNBC; yields from the U.S. Treasury par curve.
On the week the S&P 500 fell 1.95% and the Nasdaq 100 fell 5.49%. Nasdaq 100 futures settled Friday at 29,391.25, down 2.50%, and S&P 500 futures at 7,703.00, down 1.13%; details are in Friday's Nightcap. Oil is the weekend risk: CNBC counted at least nine ships attacked in the Strait of Hormuz since Sunday, and WTI rose more than 10% on the week.
Two more headlines we have not confirmed
Bloomberg's headline says the Bank of Canada sees higher oil prices boosting growth and inflation, and an Investing.com headline says the Philadelphia semiconductor index SOX posted its longest losing streak since 2008. We could not read either article in full, so we are not repeating figures from them. We will update when the text is available.
The week ahead
Our economic calendar shows building permits Tuesday, Oct. 20 (forecast 1.395 million, prior 1.394 million), jobless claims Thursday, Oct. 22 (forecast 200,000, prior 199,000) and flash S&P Global composite PMIs Friday, Oct. 23 (prior 58.4). The Fed's rate decision is Wednesday, Oct. 28. We have not confirmed a schedule of Fed speakers or a list of this week's earnings reports, so we leave them out rather than guess.
Sources: CNBC, CNBC on oil, Yahoo Finance, U.S. Treasury, Chronicle markets board. This is market information, not investment advice.
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