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Investors accelerated their cautious turnaround on Friday, sending stocks sharply lower and adding to the weakness seen in the previous session. Concerns about Russia’s attack on Ukraine and the future of interest rates continued to weigh on the market, forcing participants to move to safety.
The main average values reached their lowest values at the close, but still noted a noticeable weakness during the day. Nasdaq (COMP.IND) closed with the worst performance among the main averages, -1.7%. The S&P (SP500) ended -0.8% and the Dow (DJI) fell -0.5%.
Looking at the preliminary closing numbers, the Dow fell $ 179.86 to finish at 33,614.80. The S&P 500 reported a retreat of 34.62, ending the session at 4328.87. Nasdaq closed at 13,313.44, down 224.50 during the day.
Russia’s attacks on Ukraine have intensified as the Zaporozhye nuclear power plant, Europe’s largest, was taken over by Russian forces after heavy shelling.
Given the continuing uncertainty about the conflict, the VIX ended sharply higher, above 32. Meanwhile, five of the 11 S&P sectors closed higher, with energy and utilities showing the biggest gains. Consumer Discretionary and Information Technology dropped the most.
Interest rates fell as yields on 10-year bonds fell 11 basis points to 1.74% and 2-year bonds fell about 5 basis points to 1.49%.
European stock markets have also fallen sharply, as the euro is at its lowest level since green money since May 2020. Oil prices have also risen, with WTI crude oil returning above $ 115 a barrel.
In economic news, investors reviewed the latest job report, although the impact was overshadowed by events in Ukraine. Non-agricultural wages jumped 678,000 in February, with January revised upwards. The labor force participation rate reached 62.3%.
“It’s no surprise to see a stronger-than-expected report on jobs in February, as Omicron’s cases began to decline rapidly during the month, which heralds a good labor market,” said Julian Cosky, director of information technology at New Age Alpha. . “During the pandemic, we saw more jobs during declining Covid cases and vice versa.”
“Due to the tragic events in Russia and Ukraine, global stocks are currently valued on the basis of uncertainty rather than some financial information, which has traditionally driven stocks,” Koski added. “In this uncertain environment, there is an increase in vague and ambiguous information in the markets, which could lead investors to make impulsive decisions out of fear.
“Investors have no control over what is happening with inflation, Federal Reserve policy and how the situation in Russia and Ukraine may develop. Investors can control which stocks they invest in, and we would advise investors to determine whether the individual companies in which they are investing can meet the growth expectations set in their share price. “
Among the active shares. PVH is the biggest drop in S&P as clothing stocks fall.