- Dow Industrial Index Confirms Correction
- Financial and tourism stocks are down
- Energy stocks outperform the broader market
- Oil prices hit their highest level since 2008
- Indices are falling: Dow 2.37%, S&P 2.95%, Nasdaq 3.62%.
March 7 – Wall Street’s major indexes fell sharply on Monday, with the Nasdaq Composite confirming the market is in a bear market as the prospect of a ban on oil imports from Russia sent oil prices soaring and fueled growth fears inflation.
The Nasdaq fell 20.1% from its all-time high close on Nov. 19, confirming that the high-tech index has been in a bear market since hitting that all-time high, by a widely used definition. This is the first Nasdaq bear market since 2020, when the coronavirus outbreak devastated the global economy.
The Dow Jones Industrial Average fell 10.8% from its all-time high close on Jan. 4, confirming its correction. A correction is confirmed when the index closes 10% or more below its all-time closing level.
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Oil prices jumped to their highest level since 2008 as the United States and European allies considered banning Russian oil imports in response to the country’s invasion of Ukraine, while Iranian oil is unlikely to quickly return to world markets.
Russia calls this campaign a “special operation.”
Energy (.SPNY), the standout group in the S&P 500 this year, was one of the few sectors to post gains on Monday, climbing 1.6%. More
“This oil concern has led to concerns about higher inflation and potential stagflation,” said Mona Mahajan, senior investment strategist at Edward Jones. higher gas station prices.
The Dow Jones Industrial Average (.DJI) fell 797.42 points, or 2.37%, to 32,817.38, while the S&P 500 (.SPX) fell 127.79 points, or 2.95%, to 4 201.08 points, while the Nasdaq Composite (.IXIC) rose 482.48 points, or 3.62%, to 12,830.96.
Amazon, Microsoft (MSFT.O) and Apple (AAPL.O) were among the top performers in the S&P 500, while the financial sector (.SPSY) fell 3.7%. The public utilities sector (.SPLRCU), one of the defensive sectors of the stock market, added 1.3%.
Ukrainian officials said the bakery was hit by Russian air strikes as the country’s representatives convened for talks with Russian officials after previous rounds that did not bring a respite to the conflict. More
Shares in United Airlines Holdings Inc fell 15% and shares in Norwegian Cruise Line Holdings (NCLH.N) tumbled 11.6% amid a significant downturn in travel and leisure as a surge in oil prices threatened to derail a nascent recovery.
Stocks struggled in early 2022 as fears of a Russian-Ukrainian crisis exacerbated a sell-off initially fueled by fears of higher bond yields as the Federal Reserve is expected to tighten monetary policy this year to fight inflation. The S&P 500 hit its lowest close since June 2021.
“The market was already nervous about the Fed’s rate hike cycle,” said Burns McKinney, portfolio manager at NFJ Investment Group. “Now with higher energy prices added to that… could end up moving quickly into the later stages of the market cycle.”
Investors are looking forward to Thursday’s US consumer price report as the Fed is expected to raise rates later this month to fight rising inflation.
There were more declining issues on the NYSE than rising issues at a ratio of 3.62 to 1; on the Nasdaq, a ratio of 2.74 to 1 favored the decline.
The S&P 500 recorded 50 new 52-week highs and 69 new lows; The Nasdaq Composite recorded 63 new highs and 546 new lows.
About 17 billion shares have changed hands on US exchanges, compared to about 13 billion per day on average over the past 20 sessions.
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Reporting by Lewis Krauskopf, Steven Culp and Caroline Waletkiewicz in New York, Devik Jain and Sabahatjahan Contractor in Bangalore; Edited by Sriraj Kalluvila and Lisa Shoemaker
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