The New York Stock Exchange (NYSE) logo is on display on the floor of the NYSE in New York City, the United States, on March 29, 2022. REUTERS/Brendan McDermid
- US bond market fuels recession worries
- Private payrolls rose 455,000 jobs in March
- Dow down 0.19%, S&P 500 down 0.63%, Nasdaq down 1.21%
NEW YORK, March 30 – US stocks fell on Wednesday, with the Dow and S&P 500 posting four win streaks, as signs of progress in peace talks between Ukraine and Russia amid a restrictive Federal Reserve, that curbs the economy, growth dwindles.
Russian forces bombed the outskirts of Kyiv and a besieged city in northern Ukraine, a day after promising to scale back operations. Continue reading
The S&P rallied more than 5% in March after starting the year with two straight monthly declines. Still, the benchmark index is on track for its first quarterly decline since the first quarter of 2020, when the COVID-19 pandemic peaked in the United States.
Stock prices have reacted to headlines about negotiations to resolve Russia’s invasion of Ukraine. Prices of commodities such as oil and metals have skyrocketed since the invasion, adding to already high US inflation.
“Ukraine is the defining narrative for this market if we reach an agreement and we get the potential from that agreement for lower energy prices, which is really key, and then some sort of return to normalcy in terms of the world economy that’s for really positive about the market,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
“If not, we’re just going to keep going back and forth here as the market tries to digest who the winners and losers are because this war has many unintended consequences,” Meckler added.
The Dow Jones Industrial Average (.DJI) fell 65.38 points, or 0.19%, to 35,228.81, the S&P 500 (.SPX) lost 29.15 points, or 0.63%, to 4,602.45 and the Nasdaq Composite (.IXIC) fell 177.36 points, or 1.21%, to 14,442.28.
As inflation rises, speculation is mounting that the Federal Reserve may raise interest rates more aggressively, which could dampen economic growth.
The S&P Energy Index (.SPNY) was the leading sector on the positive side, up 1.17%. It’s up almost 40% this year, which would mark its strongest quarterly performance ever.
The sector is currently one of only three to look positive on the year and has far outperformed the next best performer in Utilities (.SPLRCU), which is up nearly 4% year-on-year but at a record high for a fourth consecutive day closed.
Some investors have taken a defensive stance on fears of excessive Fed tightening and recent signals in the bond market that often appear to herald a recession. Continue reading
Nevertheless, economic data continue to point to a strong labor market. The ADP National Employment Report showed that private payrolls rose 455,000 jobs last month after rising 486,000 in February. Investors will be keeping an eye on Friday’s payroll report. Continue reading
Lululemon Athletica Inc (LULU.O) rose 9.58% after full-year earnings and revenue forecast ahead of estimates as demand for athletic apparel remains strong. Continue reading
Volume on US exchanges was 11.69 billion shares compared to the average of 13.93 billion for the entire session over the past 20 trading days.
Declining issues predominated on the NYSE at a 1.24 to 1 ratio; on the Nasdaq, a 1.98 to 1 ratio favored decliners.
The S&P 500 posted 44 new 52-week highs and 1 new low; the Nasdaq Composite posted 51 new highs and 47 new lows.
Reporting by Chuck Mikolajczak; Edited by Will Dunham and David Gregorio