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Stock Market News for Mar 1, 2022

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U.S. stocks market closed mixed on Monday, the last trading day of February, as market participants closely monitored the developments regarding the geopolitical conflict between Russia and Ukraine. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in green. For the month as a whole, all three major stock indexes dropped sharply.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) dropped 0.5% or 166.15 points to close at 33,892.60. However, 10 component of the 30-stock index ended in green while 20 finished in negative zone.

The tech-heavy Nasdaq Composite finished at 13,751.40, rising 0.4% due to the strong performance of large-cap technology stocks. Meanwhile, the S&P 500 slid 0.2% to end at 4,373.94. Four out of 11 broad sectors of the benchmark index closed in positive territory while seven ended in red.

The Real Estate Select Sector SPDR (XLRE), the Consumer Staples Select Sector SPDR (XLP), the Materials Select Sector SPDR (XLB) and the Financials Select Sector SPDR (XLF) tanked 1.7%, 1.3%, 1.1% and 1.5%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) surged 2.5%.

The fear-gauge CBOE Volatility Index (VIX) was up 9.3% to 30.15. Decliners outnumbered advancers on the NYSE by a 1.10-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored declining issues. The S&P 500 recorded 20 new 52-week highs and five new 52-week lows. The Nasdaq Composite registered 45 new 52-week highs and 92 new 52-week lows.

Geopolitical Conflict Continues

The first negotiation meeting between Russia and Ukraine ended without any fruitful result. On Feb 24, President Joe Biden said that his administration is considering more punitive actions against Russia to isolate that country from the global financial markets. Meanwhile, over the weekend, the U.S. and its allies agreed to exclude selected Russian banks from the SWIFT interbank messaging system. This measure  will effectively detach Russian banks from the global financial network.

Russian ruble has depreciated more than 22% compared with the U.S. dollar. The Russian central bank has raised the benchmark interest rate to 20% from 9.5% and closed stock exchanges for a week. Several Russian stocks traded in the London Stock Exchange plunged 25% to 75% on Monday.

In the United States, the yield on the benchmark 10-Year U.S. Treasury Note fell 14.8 basis points to 1.836% as market participants continued to shift their funds from risky assets like equities to safe haven government bonds. This was the biggest one-day decline of the yield since Nov 26.

The crude oil prices also maintained their northbound journey. The U.S. benchmark – the WTI crude – rose 4.5%, to settle at $95.72 a barrel. The global. benchmark – the Brent crude – rose 3%, to settle at $101.10 a barrel.

Shares of Defense stocks like Lockheed Martin Corp. (LMT - Free Report) and Northrop Grumman Corp. (NOC - Free Report) climbed 6.7% and 7.9%, respectively. Both stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

Advance Trade in U.S. Goods for January hit an all-time low of -$107.6 billion, from a more narrowly revised -$100.5 billion the previous month.

Monthly Roundup

February was highly disappointing as market participants assessed the Fed’s next move regarding interest rate and geopolitical conflict between Russia and Ukraine. The Dow plummeted 3.5% or 1,239.26 points, marking the largest one-month point and percentage decline since November.

The S&P 500 tumbled 3.1% or 141.61 points. The Nasdaq Composite tanked 3.4% or 488.48 points in February. The tech-laden index plunged 12% in the first two months of 2022, reflecting the largest two-month percentage decline since March 2020.

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