The Ukrainian-Russian war entered its 7th day, the panic index VIX rose sharply on Tuesday (1st), U.S. bond yields fell, financial stocks collapsed, oil prices soared to the highest level in seven years, energy stocks dominated, and the four major indexes were all exhausted at the end. The Dow Jones fell nearly 600 points, on the verge of correction.
According to political and economic news, Russia on Tuesday expanded its shelling on Ukraine’s second largest city, Kharkiv, and continued to besiege Ukraine’s capital, Kyiv. Russia’s Defense Ministry on Monday announced that it would bomb Kyiv and warned civilians to leave as soon as possible, before a TV tower in Kyiv was attacked by Russian troops in an attempt to disrupt Ukrainian communications equipment. Ukrainian President Volodymyr Zelensky signed an application for the country to join the European Union on February 28. He delivered a speech to an emergency session of the European Parliament via video link, urging the European Union to approve the accession as soon as possible.
The International Energy Agency (IEA) on Tuesday agreed to release 60 million barrels of strategic petroleum reserves (SPR) globally, of which the United States pledged to release 30 million in response to rising international oil prices.
U.S. President Joe Biden is regarding to deliver his first State of the Union address since taking office, and White House officials said the address would be an effort to unite European allies and other countries to stand up for democracy and oppose Russia’s invasion of Ukraine.
US Federal Reserve (Fed) Chairman Powell will go to Congress on March 2 and 3 to deliver a semi-annual monetary policy report. This may be Powell’s last public speech on monetary policy before the Fed starts raising interest rates. How Inflation and the Russia-Ukraine War Affect the Fed’s Future Currency Decisions. Markets had expected the Fed to raise rates as many as seven times in 2022, and only five were recently priced in.
Before the deadline, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 437 million, and the number of deaths has exceeded 5.96 million. More than 10.8 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (1st):
- The Dow Jones Industrial Average fell 597.65 points, or 1.76%, to end at 33,294.95.
- The Nasdaq lost 218.94 points, or 1.59 percent, to end at 13,532.46.
- The S&P 500 lost 67.68 points, or 1.55%, to end at 4,306.26.
- The Philadelphia Semiconductor Index fell 124.68 points, or 3.64 percent, to 3,304.85.
Focus stocks
The five kings of science and technology fell together. Apple (AAPL-US) fell 1.16%; Meta (formerly Facebook) (FB-US) fell 3.57%; Alphabet (GOOGL-US) fell 0.74%; Amazon (AMZN-US) fell 1.58%; Microsoft (MSFT-US) fell 1.29%.
The Dow Jones components were led lower by American Express. American Express (AXP-US) fell 8.47%; Boeing (BA-US) fell 5.08%; Goldman Sachs (GS-US) fell 3.27%; JPMorgan Chase (JPM-US) fell 3.77%; Salesforce (CRM-US) fell 0.78%; Kaiyuan Heavy Industries (CAT-US) fell 2.53 percent; Chevron (CVX-US) rose 3.99%.
Half of the constituent stocks were hit hard. AMD (AMD-US) fell 7.71%; Nvidia (NVDA-US) fell 3.72%; Applied Materials (AMAT-US) fell 3.42%; Micron (MU-US) fell 2.93%; Qualcomm (QCOM-US) fell 4.83%; Intel (INTC-US) fell 1.84%.
Taiwan stock ADR was mixed. TSMC ADR (TSM-US) rose 0.97%; ASE ADR (ASX-US) fell 0.28%; UMC ADR (UMC-US) rose 0.75%; Chunghwa Telecom ADR (CHT US) fell 0.40%.
Corporate News
Apple (AAPL-US) fell 1.16% to 163.20 per share Dollar. Apple on Tuesday announced it had joined the sanctions once morest Russia, halting the sale of its products in the Russian Apple Store and removing Russian state media RT News and Sputnik News from App Stores outside Russia.
Target (Target) (TGT-US) surged 9.90% to 219.43 per share on Tuesday Dollar. Target’s fourth-quarter profit in premarket Tuesday easily topped analysts’ estimates, forecasting a “high single-digit percentage” for 2022 earnings as consumers continued to shop for clothing and groceries in an inflationary environment growing up.
Zoom Video (ZM-US) in the fourth quarter of fiscal year 2022 reported revenue of 1.0714 billionDollaran annual increase of 21%, a slowdown from the previous quarter, coupled with a worse-than-market forecast, dragging down its stock price by 7.41% to 122.78 per share Dollar。
Economic data
- The final value of the US Markit manufacturing PMI in February was 57.3, expected to be 57.5, and the previous value of 57.5
- US February ISM manufacturing index reported 58.6, expected 58, the previous value of 57.6
Wall Street Analysis
Despite tight inventories, rising costs, supply chain challenges and a difficult hiring environment, manufacturing remains on solid expansion and demand remains strong, said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
Fawad Razaqzada, an analyst at ThinkMarkets, said investors were concerned that Russia had become a red-eye, and the market movement was not surprising given the impact of the situation in Ukraine and the impact of sanctions on Russia on the broader global market.
Lindsey Bell, chief market and currency strategist at Ally, said the Ukrainian-Russian conflict is pushing up oil and other raw material prices, which does suggest inflation is likely to remain elevated for longer.
“The market is grappling with the Ukrainian news and how that will slow economic growth, which will lead to a less hawkish move from the Fed,” said Larry Weiss, head of equity trading at Instinet.
(The figures are updated before the deadline, please refer to the actual quotation)
