The news that the United States and the European Union are weighing energy sanctions once morest Russia once drove oil prices to a 14-year high and exacerbated investors’ concerns regarding the drag on economic growth. The four major indexes tumbled on Monday (7th), and the Dow Jones fell nearly 800 points , entered the correction range, the Nasdaq fell 3.6%, fell 20% from the historical peak at the end of last year, and fell into a bear market.
The Dow has fallen regarding 10% from its all-time peak on Jan. 4, the last time it fell into correction on Feb. 27, 2020, amid a massive sell-off largely due to the pandemic.
U.S. Secretary of State Antony Blinken said on Sunday that he was discussing the possibility of embargoing Russian oil and gas with allies, and House Speaker Nancy Pelosi also said a strong bill was being developed to ban Russia Oil imports.
In addition, foreign media quoted officials familiar with the matter as saying that in order to reduce dependence on Russian natural gas, the European Commission is developing an energy strategy, such as developing new natural gas supply sources or improving energy efficiency, a move that may lead to a reduction in European demand for Russian natural gas this year. nearly eighty percent.
After the news of the European and American assessment of energy sanctions came out, oil prices once soared to the highest level since 2008, and energy stocks rose accordingly. Concerns that oil prices would exacerbate inflation and drag down economic growth caused the financial and consumer discretionary sectors to suffer heavy losses.
Russia and Ukraine concluded their third round of talks on Monday night without making substantial progress on a truce. Mykhailo Polodnyak, an adviser to the Ukrainian president, said the two sides had made little progress in improving transport along the humanitarian corridor and would continue to negotiate a truce and security agreement, while the Russian representative said Ukraine had not met expectations.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 447 million, and the number of deaths has exceeded 6 million. More than 10.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (7th):
- The Dow Jones Industrial Average fell 797.42 points, or 2.37%, to close at 32,817.38 points.
- The S&P 500 lost 127.79 points, or 2.95%, to end at 4,201.08.
- The Nasdaq Composite lost 482.48 points, or 3.62 percent, to end at 12,830.96.
- The Philadelphia Semiconductor Index fell 159.99 points, or 4.91 percent, to 3,098.93.
Focus stocks
The five kings of science and technology are all in ink. Apple (AAPL-US) fell 2.37%; Meta(FB-US) fell 6.29%; Alphabet (GOOGL-US) fell 4.19%; Amazon (AMZN-US) fell 5.62%; Microsoft (MSFT-US) fell 3.78%.
The Dow Jones components were led lower by American Express. American Express (AXP-US) fell nearly 8%; Boeing (BA-US) fell 6.45%; Nike (US-US) fell 5.14%; Disney (DIS-US) fell 5.13%; McDonald’s (MCD-US) fell 4.87%; Chevron (CVX-US) rose 2.14%; Johnson & Johnson (JNJ-US) rose 1.61 percent; Amgen (AMGN-US) rose 0.62%; the development of heavy industry (CAT-US) rose 0.53%.
Half of the constituent stocks fell sharply. Micron (MU-US) fell 7.58%; Qualcomm (QCOM-US) fell 7.49%; Huida (NVDA-US) fell 6.91%; Yingcai (AMAT-US) fell 5.19%; AMD (AMD-US) fell 5.04%; Broadcom (AVGO-US) fell 4.24%; Intel (INTC-US) fell 0.81%.
None of the Taiwan stock ADRs were spared. TSMC ADR (TSM-US) fell 5.49%; ASE ADR (ASX-US) fell 6.48%; UMC ADR (UMC-US) fell 4.76%; Chunghwa Telecom ADR (CHT US) fell 1.44%.
Corporate News
RC Ventures, an investment firm owned by GameStop President Ryan Cohen, has acquired a nearly 10% stake in BBBY, according to regulatory filings.BBBY-US), the stock price soared by 80% at the opening, but the gains converged at the end of the session, still up 34%.
Worries that the Russian-Ukrainian war has tightened global supplies and pushed up energy costs dragged airline stocks collectively lower, with United Airlines (UAL-US) closed down 15%, while Delta Air Lines (DAL-US) closed down 12.7%, American Airlines (AAL-US) closed down nearly 12 percent.
Rising oil prices boosted energy stocks, with Schlumberger (SLB-US) closed up 8%, Halliburton (HAL-US) closed up 6.18%, Baker Hughes (BKR-US) closed up 4.7 percent. West Texas Intermediate (WTI), the U.S. benchmark, topped $130 a barrel earlier Dollarthe highest since September 2008.
Ralph Lauren(RL-US) and PVH (PVH-US) fell 12.2% and 15.4% respectively. As the war between Russia and Ukraine continues, Wedbush believes that European consumer confidence may further deteriorate, and the losses may be even more severe for the two companies that rely on the European market. PVH owns well-known brands such as Tommy Hilfiger, Calvin Klein and Warner’s.
Visa(V-US) and MasterCard (MA-US) fell 4.8% and 5.4%, respectively, following the two companies announced over the weekend that they would suspend operations in Russia.
Wall Street Analysis
“Markets are grappling with the impact of commodity supply shocks, particularly oil prices, with concerns that this might lead to stagnant inflation rather than just an inflation shock,” said Kathy Bostjancic, chief U.S. economist at Oxford Economics.
Amid geopolitical tensions, Citigroup, UBS, Yardeni Research, and Evercore ISI have all downgraded their outlooks for U.S. stocks, and long-term bullish Yardeni Research president Ed Yardeni has become one of Wall Street’s biggest bears as he sees 2022 The S&P 500 is expected to be revised down to 4,000 points, down 16%.
Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, believes that continued disruptions in global commodity markets will drive up inflation for a long time, and economic growth will continue to be limited as global trade and supply chains remain constrained. slow down, a situation that might lead to stagflation.
Anastasia Amoroso, chief investment strategist at iCapital, said: “The market is definitely reflecting a rapid deterioration in sentiment, but I would say it’s not just a matter of sentiment, we think inflation might pick up significantly in the coming months, prompting a slowdown in economic growth. “
The figures are updated before the deadline, please refer to the actual quotation.
