Traders on the NYSE floor, March 4, 2022
Source: New York Stock Exchange.
Equity futures fell slightly in overnight trading on Monday after the worst day for the S&P 500 since October, as investors remain concerned about rising oil prices and a slowdown in economic growth amid Russia’s invasion of Ukraine.
Futures for the Dow Jones Industrial Average dropped 100 points. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.4%.
The overnight action came after a sharp sell-off on Wall Street, with the S&P 500 drop nearly 3%, the biggest single-day drop in more than a year. The blue-chip Dow plunged nearly 800 points for its fifth negative session in six, while the high-tech Nasdaq Composite fell 3.6%, falling into bear market territory, 20% off its November record high.
“The mood is clearly negative,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “Any hope/optimism that may have disappeared seems to have completely evaporated from the market and there is no interest in buying dips.”
Oil prices surged earlier in the week as U.S. oil hit a 13-year high of $130. In the end, WTI futures rose 3.2% to $119.40 in the Monday session, the highest since September 2008. The international benchmark, Brent crude, peaked at $139.13 at one point overnight before settling at $123.21 a barrel, the highest level since July 2008.
Investors continued to follow the development of the aggravation of geopolitical tensions. Ukraine has said Moscow is trying to manipulate its ceasefire agreement by allowing only Ukrainian civilians to be evacuated to Russia and Belarus.
Secretary of State Anthony Blinken said Sunday that the US and its allies are considering a ban on imports of Russian oil and natural gas for their actions against Ukraine.
“There appears to be no sign of improvement in Ukraine and the rhetoric from DC is becoming more hawkish,” said Cliff Hodge, chief investment officer at Cornerstone Wealth. “While it’s impossible to know where the final bottom might be, in terms of risk reward, the market looks very reasonable.”
Dick’s Sporting Goods will report quarterly earnings on Tuesday before the call.