The Dow New York Stock Exchange ended lower on Tuesday (Feb 14) as investors worried regarding tensions in Ukraine. Recently, the US has ordered the relocation of the American embassy in Kiev to the western part of Ukraine. In addition, the market has also been under pressure from Federal Reserve Chairman James Bullard (Fed) St. Louis branch. Support the Fed to speed up interest rate hikes to curb inflation.
The Dow Jones Industrial Average closed at 34,566.17, down 171.89, or -0.49%, the S&P500 closed at 4,401.67, down 16.97, or -0.38%, and the Nasdaq closed at 13,790.92, down 0.24, or -0.002%.
Investors are still worried regarding the tense situation in Ukraine. After senior US and British officials warned that Russia is ready to invade Ukraine at any time. While the latest reports indicate that US Secretary of State Anthony Blingen has ordered the American embassy in Kiev to be moved to Lvue. which is in the west of Ukraine Because the situation in the Ukrainian border area is very stressful.
The market came under even more pressure when St. Louis Fed Chairman James Bullard said in a recent interview with CNBC that the Fed needs to withdraw monetary easing sooner than expected. Because inflation accelerated more than expected. The comments came following last week. Bullard has caused market panic by saying the Fed should raise interest rates 1.00% by July.
Sam Stowal, an analyst with CFRA Research, said markets were under pressure as hawkish Fed officials such as Bullard made clear stances for the Fed to raise interest rates. After US inflation reached its highest level in 40 years, Stowol said the tensions in Ukraine might be a temporary negative for the market. Because in the past history Geopolitical conflicts are not the cause of the global recession.
Nine of the 11 stocks included in the S&P500 closed in negative territory, led by energy stocks down 2.2 percent, with Exxon Mobil down 1.53 percent, Chevron down 1.54 percent, Conoco Phillips. Down 2.11%, Halliburton shares were down 3.46 percent.
The luxury goods index And the communications business stock index rose 0.58% and 0.32%, respectively.
Pfizer shares fell 1.93 percent following the U.S. Food and Drug Administration (FDA) postponed an advisory committee meeting to discuss approval for the coronavirus vaccine. Pfizer-Biontech’s study in children aged 6 months to 4 years, said the FDA would like more information regarding the vaccine trial.
Shares of other vaccine companies also fell overnight. Moderna shares were down 11.68 percent, Novavax was down 11.42 percent, and Johnson & Johnson shares were down 1.17 percent.
Tesla shares jumped 1.83 percent following China’s auto industry regulators confirmed that Sales of Tesla’s electric vehicles made in China soared to nearly 60,000 in January.
Investors eyeing earnings of major listed companies this week This includes Wal-Mart and India (Nvidia).
Investors are also looking to see US economic data this week, including the New York Fed’s Empire State Manufacturing Index for February, the Producer Price Index (PPI) for January and sales. January retail, January import and export prices, January industrial production, February housing market index from the National Association of Home Builders (NAHB). ), Minutes of the Fed meeting, weekly unemployment claims, home building starts and building permits in January, pre-owned home sales in January. and the leading economic index for January from the Conference Board.
