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U.S. stocks ended lower on Friday to record second consecutive week of losses, as fears of a Russian invasion on Ukraine kept investors on the edge. All the three major indexes ended in negative territory.
The S&P 500 declined 0.7% or 31.39 points to close at 4,348.87 points. Technology, industrials and communication services were the worst performers.
Technology Select Sector SPDR (XLK) lost 1%, while the Communication Services Select Sector SPDR (XLC) and Industrials Select Sector SPDR (XLI) each declined 0.8%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.2% or 168.65 points, to end at 13,548.07points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.28% to 27.75. A total of 11.3 billion shares were traded on Friday, lower than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 1.84-to-1 ratio. On Nasdaq, a 2.10-to-1 ratio favored declining issues.
Russia-Ukraine Crisis Impacting Markets
Renewed fears of a Russian invasion on Ukraine once again made investors jittery on Friday, adding to the weekly losses. All the three major indexes had taken a massive hit on Thursday and the bloodbath continued on Friday on reports that U.S. officials believe that Russia could attack Ukraine anytime over the next few days.
Fears further escalated after Secretary of State Antony Blinken told the United Nations that the situation at this stage is a “moment of peril”. Although diplomatic efforts to initiate further talks with Moscow remain in focus for several world leaders including U.S. President Joe Biden, fears of a war breaking out anytime looms.
Moreover, reports from the United States and NATO that Russia is deploying additional troops near the Ukraine border instead pulling back has further added to the fears.
Investors Worry About Rate Hikes
Markets have been suffering from the beginning of this year as investors fear that the Fed will adopt an aggressive policy while hiking interest rates this year. Experts believe that the Fed will go for at least four rate hikes this year, beginning March, to put a check on inflation.
The growing worries among investors have been taking a toll on growth stocks, especially tech stocks, and Friday was no different.
Economic Data
In economic data released on Friday, the National Association of Realtors said that existing home sales rose 6.7% in January to a seasonally-adjusted annual rate of 6.5 million.
However, the index of leading economic indicators for the U.S. also unexpectedly declined 0.3% in January as a result of high inflations, growing cases of the Omicron variant of the coronavirus and supply-chain crisis. This is the index’ first decline since February 2021.
Weekly Roundup
All the three major indexes ended lower for the second straight week. The Dow declined 1.9% for the week. The S&P 500 finished 1.6% lower, while the Nasdaq was down 1.8%.
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Stock Market News for Feb 22, 2022
U.S. stocks ended lower on Friday to record second consecutive week of losses, as fears of a Russian invasion on Ukraine kept investors on the edge. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.7% or 232.85 points to finish at 34,079.18 points. Shares of Intel Corporation (INTC - Free Report) declined 5.3%, while Apple, Inc. (AAPL - Free Report) fell 0.9%. Apple has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The S&P 500 declined 0.7% or 31.39 points to close at 4,348.87 points. Technology, industrials and communication services were the worst performers.
Technology Select Sector SPDR (XLK) lost 1%, while the Communication Services Select Sector SPDR (XLC) and Industrials Select Sector SPDR (XLI) each declined 0.8%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq fell 1.2% or 168.65 points, to end at 13,548.07points.
The fear-gauge CBOE Volatility Index (VIX) was down 1.28% to 27.75. A total of 11.3 billion shares were traded on Friday, lower than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 1.84-to-1 ratio. On Nasdaq, a 2.10-to-1 ratio favored declining issues.
Russia-Ukraine Crisis Impacting Markets
Renewed fears of a Russian invasion on Ukraine once again made investors jittery on Friday, adding to the weekly losses. All the three major indexes had taken a massive hit on Thursday and the bloodbath continued on Friday on reports that U.S. officials believe that Russia could attack Ukraine anytime over the next few days.
Fears further escalated after Secretary of State Antony Blinken told the United Nations that the situation at this stage is a “moment of peril”. Although diplomatic efforts to initiate further talks with Moscow remain in focus for several world leaders including U.S. President Joe Biden, fears of a war breaking out anytime looms.
Moreover, reports from the United States and NATO that Russia is deploying additional troops near the Ukraine border instead pulling back has further added to the fears.
Investors Worry About Rate Hikes
Markets have been suffering from the beginning of this year as investors fear that the Fed will adopt an aggressive policy while hiking interest rates this year. Experts believe that the Fed will go for at least four rate hikes this year, beginning March, to put a check on inflation.
The growing worries among investors have been taking a toll on growth stocks, especially tech stocks, and Friday was no different.
Economic Data
In economic data released on Friday, the National Association of Realtors said that existing home sales rose 6.7% in January to a seasonally-adjusted annual rate of 6.5 million.
However, the index of leading economic indicators for the U.S. also unexpectedly declined 0.3% in January as a result of high inflations, growing cases of the Omicron variant of the coronavirus and supply-chain crisis. This is the index’ first decline since February 2021.
Weekly Roundup
All the three major indexes ended lower for the second straight week. The Dow declined 1.9% for the week. The S&P 500 finished 1.6% lower, while the Nasdaq was down 1.8%.