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Despite their lowest levels in the last minutes of trading, US stocks closed lower on Tuesday after Russia strengthened intensifies its invasion of Ukraine, pushing oil prices above $ 100 a barrel and lowering government bond yields.
Dow Jones decreased by 1.8%and the S&P 500 decreased by 1.6%and Nasdaq decreased by 1.6%.
Looking at the preliminary closing figures, the Dow Jones Industrial Average fell 597.65 to 33,294.95. The S&P 500 fell 67.68 to 4,306.26. Nasdaq withdrew 218.94 to 13,532.46.
Showing the broad weakness that marked trade, 10 of the 11 industrial sectors of the S&P 500 ended in the red, led by a 3.7% decline in financial performance. Energy was the only stubborn one, with higher oil prices sparking a new rally in the sector.
Yields on 10-year bonds fell 11 basis points to 1.73%. The 2-year yield withdrew by about 8 basis points to 1.35%.
Crude oil rose 8.7 percent to $ 104.39 a barrel, gold rose 2.4 percent to $ 1947 an ounce; wheat futures rose 5.4% to 984 cents a bushel.
Military action in Ukraine and a number of economic sanctions against Russia are on the brink of investors. In his note on the stock market positioning model, Citi analyst Chris Montagu wrote: “Investors are becoming less short in most markets … US futures positioning has expanded and unilaterally short for the Nasdaq 100 and lower for the Nasdaq 100. S&P 500.
As the Russia-Ukraine conflict looms over the world economy and threatens to thwart the US economic recovery, traders have dropped expectations of raising interest rates by 50 basis points at the Fed’s March 15-16 meeting. The probability of rising by 25 bps now stands at 92% against 58.6% a week ago, according to the CME FedWatch Tool. One week ago, the probability of a 50 bps rise was 41%; is now at 0.
The report on jobs in February, due to be published on Friday, may change that. “While most now expect the Fed to raise interest rates by just 25 basis points next month, a hotter-than-expected Friday job report could increase the chances of moving by 50 basis points,” said Anthony Saglimbene, global market strategist at Ameriprise. Bloomberg.
Russia has previously retaliated against Western sanctions; The Moscow Stock Exchange is still closed