Downturn due to failure of ceasefire agreement… Nasdaq fell 2.18%
Possibility of rate hike, Fed’s next week’s move
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New York stocks fell following Russia’s invasion of Ukraine. Growing fears of further sanctions from the West on Russia have dampened investor sentiment.
At the New York Stock Exchange (NYSE) on the 11th (local time), the Dow Jones Industrial Average closed at 32,944.19, down 229.88 points (0.69%) from the previous day.
The Standard & Poor’s (S&P) 500 index fell 55.21 points (1.30%) to 4,204.31, and the Nasdaq index, which focuses on technology stocks, finished trading at 12,843.81, down 286.15 points (2.18%) from the battlefield.
The Dow was down for the fifth week in a row, while the S&P 500 and Nasdaq were down for the second week in a row. Recently, investors are paying attention to the situation of war between Russia and Ukraine, the West’s move to tighten sanctions, and the economic consequences of it.
Stocks opened higher on news that talks between Russia and Ukraine are making some progress. According to Archyde.com, Russian President Vladimir Putin told Belarusian President Alexander Lukashenko during a visit to Russia on the same day that “there are some positive changes”. However, an armistice agreement was not reached, and the stock market turned downward due to disappointment.
In addition, President Joe Biden announced on the same day that Russia would be stripping Russia of its most-favored-nation treatment under the Permanent Normal Trade Relations (PNTR). The PNTR refers to a relationship with the United States under the most favorable tariffs without regular review by Congress. President Biden also banned imports of Russian vodka, seafood and luxury goods.
LPL Financial Analyst Ryan Detrick said the share price was bearish as hopes for a ceasefire turned to disappointment.
International oil prices also rose. The price of West Texas Intermediate (WTI) for delivery in April closed at $109.33 per barrel, up 3.1% from the previous day. Metal prices fell for all but copper. Palladium futures fell 4%, while agricultural prices were mixed.
By stock, Rivian plunged 7.6% due to sluggish 4Q earnings, and Documenta Sign fell 20.1%. Technology stocks continued to be bearish. Zoom video is down 5% and Metaplatform is down 3.9%.
Concerns are also growing over the US central bank’s (Fed) rate hike. Investors are also watching the Fed tightening ahead of next week’s Federal Open Market Committee (FOMC) regular meeting. The market sees a more than 90% chance that the Fed will raise the key interest rate by 0.25 percentage points at this meeting.
Ryu Eun-hyuk, staff reporter at Hankyung.com [email protected]
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