US stocks plummeted on Tuesday to mark another volatile day on Wall Street as investors assessed intensifying Russian attacks on Ukraine and the attack on new Western sanctions against the possibility of geopolitical uncertainty to divert the Federal Reserve from its aggressive first strike. rates.
The S&P 500 fell 1.7% to its lowest session value of 4,299.97, and the Dow Jones Industrial Average fell 2.1% to 33,166.98. The Nasdaq Composite also fell 1.6% to 13,525.98. The 10-year US public finance index fell to 1.7%. The last trading day in February on Monday marked the worst start of the year for the Dow and S&P 500 since 2020. The Nasdaq, which has now fallen 12.1% since the beginning of the year, recorded its worst January and February of 2009 this year.
WTI crude, meanwhile, jumped 10 percent to a high of $ 105 a barrel, marking its highest price since 2014 amid worries about a collapse in the energy sector.
Russia’s economy was in the spotlight on Monday as tougher sanctions by the United States and European allies on its invasion of Ukraine shook the country’s financial system and led to a 30 percent drop in the ruble.
US and European measures, including a move to block some Russian banks from the SWIFT payment network and sanctions against Russia’s central bank, have already dealt a heavier-than-expected blow to the country’s economy, testing decades of efforts by President Vladimir Putin to to make the system resistant to sanctions.
The United States, the European Commission, France, Germany, Italy, the United Kingdom and Canada issued a joint statement Saturday launching selected Russian banks from SWIFT, a network that works to facilitate trillions of dollars in global transactions.
On Monday, the United States also banned Americans from doing business with the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation. Western financial institutions are expected to follow suit, with HSBC limiting its dealings with a number of Russian banks, including the second-largest VTB.
The crisis between Russia and Ukraine “will create great pain and damage the Russian economy,” Virginia Sen. Mark Warner told Yahoo Finance Live on Monday. “This is a much bigger economic blow than Putin expected.”
As investors watch the escalation of the crisis abroad in the United States, they turn their attention back to the Federal Reserve and its plan to raise interest rates this month.
Sky-high inflation footprints on a monthly basis have raised fears among market participants that central bank employees will raise short-term borrowing costs more aggressively than expected to mitigate rising prices, even fueling the possibility of doubled interest rates by 50 basis points. mid-March. But with uncertainty about how the Russia-Ukraine turmoil will unfold, Fed observers expect the central bank to take a slight rise in interest rates.
“Given the current conflict in Ukraine, significant short-term uncertainty remains with the central bank’s intentions,” LPL financial strategists Lawrence Gillam and Ryan Detrick said in a note, adding that pressure to raise oil and other commodity prices and sanctions against Russia could have wider economic consequences. “As such, inflationary pressures may remain high, especially when it comes to gas prices.
And yet, like many Fed observers, the LPL has raised its price for the first time from 25 basis points this month – so far.
“As long as there is some kind of deal or the violence does not subside in Ukraine, the markets will remain at increased risk and Powell will look to be a little more careful,” Sputting Rock Asset Management chief strategist Rhys Williams told Yahoo Finance Live.
–
12:05 ET: Shares are declining as the conflict between Russia and Ukraine rages
These were the main movements of the markets during the lunch trade
S&P 500 futures (ES = F): -72.70 points (-1.66%), to 4301.24
Dow futures (YM = F): -696.50 points (-2.06%), to 33,196.10
Nasdaq futures (NQ = F): -201.44 points (-1.44%) to 13,549.96
raw (CL = F): + $ 10.54 (+ 11.01%) to $ 1106.26 per barrel
gold (GC = F): + $ 34.50 (+ 1.82%) to $ 1935.20 per ounce
10-year treasury (^ TNX): -14.44 bps to 1.695% yield
–
11:25 a.m. ET: Construction jumps in January despite higher costs
Construction costs in the United States jumped in January amid high costs for single-family housing and private non-residential structures.
The Ministry of Trade reported a 1.3% increase in construction and revision costs on December data, which reflected that construction costs rose by 0.8% instead of the originally reported 0.2%.
Bloomberg’s consensus data show that economists expect 0.1% cost recovery.
Housing construction remains under pressure from higher construction material costs despite the jump in January. The National Association of Home Builders said last month that failures in the production of building materials inflated construction prices and delayed projects.
–
10:25 a.m. ET: US manufacturing resumes
Production activity in the United States rose more than expected in February as COVID-19 infections declined. However, factory employment has slowed, exacerbated supply chain disruptions and put upward pressure on commodity prices.
The latest footprint of the Institute of Supply Management (ISM) for its national factory index rose to 58.6 last month from 57.6 in January, the lowest figure since November 2020.
A figure above 50 indicates an expansion in production, which represents 11.9% of the US economy. Economists polled by Bloomberg expected a footprint of 58.0.
–
10:00 a.m. ET: Kohls rises better than expected
Kohl’s Corp. (KSS) missed analysts’ forecasts for the fourth quarter, but reported an optimistic revenue outlook for 2022 and said it would “reward its momentum” this year.
The company recorded a 13% drop in fourth-quarter net profit to $ 299 million for the quarter ended January 29, 2022, from $ 343 million in the same period a year ago.
Although declining on a quarterly basis, net annual income jumped to $ 938 million, compared to a loss of $ 163 million in 2020 due to the pandemic. Earnings per share reached a record high of $ 7.33 in 2021.
Meanwhile, the company said it was committed to unsolicited bidders. Kohls is under pressure from activist investors, including Macellum Advisors and Engine Capital, to increase shareholder value and improve its financial performance, and also called for the company to be split into separate online and ordinary businesses, the retailer said. rejected.
Shares of Kohls rose 4.48% to $ 58.11 per share at 9:59 a.m. ET.
–
9:47 am ET: Target jumps at the beginning of trading after rising profits
Shares of Target (TGT) jumped 14% at opening, after the company reported better-than-expected prospects for its annual adjusted earnings per share.
The retailer shattered analysts’ fourth-quarter profit forecasts as consumers sought clothing and food deals amid rising inflation.
“The quarter was driven by traffic. This means that users voted with their feet and clicks and chose Target more often. So this is an incredibly healthy sign for our business, “said Target CFO Michael Fidelke at Yahoo Finance Live.
The target rose 11.42% to $ 222.59 per share at 9:47 a.m. ET.
–
9:30 a.m. ET: US stocks hold steady as investors continue to watch Russia, Ukraine
Here’s how the markets opened for Tuesday’s trading session:
S&P 500 futures (ES = F): -11.34 points (-0.26%), to 4,362.60
Dow futures (YM = F): -169.64 points (-0.50%), to 33,722.96
Nasdaq futures (NQ = F): -46.40 points (-0.34%) to 13,705.00
raw (CL = F): +5.39 dollars (+ 5.63%) to 101.11 dollars per barrel
gold (GC = F): + $ 19.50 (+ 1.03%) to $ 1920.20 per ounce
10-year treasury (^ TNX): -6.0 bps to 1.779% yield
–
7:00 AM ET: Futures fall as Russia’s attack on Ukraine enters its sixth day
Here’s how the Wall Street key performance contracts presented themselves before Tuesday’s opening:
S&P 500 futures (ES = F): -38.00 points (-0.87%), to 4330.00
Dow futures (YM = F): -258.00 points (-0.76%), to 33,582.00
Nasdaq futures (NQ = F): -132.25 points (-0.93%) to 14,095.75
raw (CL = F): +3.75 dollars (+ 3.92%) to 99.47 dollars per barrel
gold (GC = F): + $ 22.70 (+ 1.19%) to $ 1923.40 per ounce
10-year treasury (^ TNX): 0.00 bps to receive 1.839%
–
18:05 ET Monday: Equity futures stable as investors watch Russia-Ukraine crisis
Here are the main movements in the markets before overnight trading on Monday:
S&P 500 futures (ES = F): +3.75 points (+ 0.09%), to 4371.75
Dow futures (YM = F): +20.00 points (+ 0.06%), up to 33,860.00
Nasdaq futures (NQ = F): -9.50 points (-0.07%) to 14,218.50
raw (CL = F): + $ 0.16 (+ 0.17%) to $ 95.88 per barrel
gold (GC = F): + $ 8.80 (+ 0.46%) to $ 1909.50 per ounce
10-year treasury (^ TNX): -14.7 bps to 1.822% yield
–
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboardand LinkedIn