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U.S. stock markets tumbled on Tuesday, the first trading day of March, after disappointing finish in the first two months of 2022. Market participants remained highly concerned as Russia intensified its attack on Ukraine. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) plummeted 1.8% or 597.65 points to close at 33,294.95. Just 4 component of the 30-stock index ended in green while 26 finished in negative zone.
The tech-heavy Nasdaq Composite finished at 13,532.46, dropping 1.6% or 218.94 points due to the weak performance of large-cap technology stocks. Meanwhile, the S&P 500 slid 1.6% to end at 4,306.26. One out of 11 broad sectors of the benchmark index closed in positive territory while ten ended in red.
The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Financials Select Sector SPDR (XLF) tanked 2%, 1.5%, 2.3%, 1.5% and 3.7%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) gained 1%.
The fear-gauge CBOE Volatility Index (VIX) was up 10.5% to 33.32. A total of 14.9 billion shares were traded on Tuesday, higher than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 1.55-to-1 ratio. On Nasdaq, a 1.80-to-1 ratio favored declining issues.
Russia-Ukraine Crisis Intensify
The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy has approached the Ukrainian capital of Kyiv. The Russian authority has warned civilians to flee from Kyiv as military operation will intensify in next few days. Moreover, Russia stepped up its shelling of Kharkiv, Ukraine’s second-largest city.
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.
In the United States, the yield on the benchmark 10-Year U.S. Treasury Note fell 12.8 basis points to 1.708% as market participants continued to shift their funds from risky assets like equities to safe haven government bonds. The yield was above 2% before the Russian army entered Ukraine. Consequently, share prices of major banks tanked.
The crude oil prices also maintained their northbound journey. The U.S. benchmark – the WTI crude – for April Contract, rose 8%, to settle at $103.21 a barrel, marking the highest for a front-month contract since Jul 22, 2014. At sessions high, the contract price jumped to 106.78. The global. benchmark – the Brent crude – rose 7.2%, to settle at $104.97 a barrel, marking the highest finish since Aug. 8, 2014.
The Institute of Supply Management reported that the U.S. manufacturing index for the month of February came in at 58.6, beating the consensus estimate of 57.7 and January’s data of 57.6. Notably, any reading above 50 indicates expansion in manufacturing activities.
Construction Spending in January increased 1.3% in contrast to the consensus estimate of a decline of 0.1%. December’s data was revised upward from a gain of 0.2% reported earlier to a gain of 0.8%.
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Stock Market News for Mar 2, 2022
U.S. stock markets tumbled on Tuesday, the first trading day of March, after disappointing finish in the first two months of 2022. Market participants remained highly concerned as Russia intensified its attack on Ukraine. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) plummeted 1.8% or 597.65 points to close at 33,294.95. Just 4 component of the 30-stock index ended in green while 26 finished in negative zone.
The tech-heavy Nasdaq Composite finished at 13,532.46, dropping 1.6% or 218.94 points due to the weak performance of large-cap technology stocks. Meanwhile, the S&P 500 slid 1.6% to end at 4,306.26. One out of 11 broad sectors of the benchmark index closed in positive territory while ten ended in red.
The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Financials Select Sector SPDR (XLF) tanked 2%, 1.5%, 2.3%, 1.5% and 3.7%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) gained 1%.
The fear-gauge CBOE Volatility Index (VIX) was up 10.5% to 33.32. A total of 14.9 billion shares were traded on Tuesday, higher than the last 20-session average of 12.3 billion. Decliners outnumbered advancers on the NYSE by a 1.55-to-1 ratio. On Nasdaq, a 1.80-to-1 ratio favored declining issues.
Russia-Ukraine Crisis Intensify
The geopolitical conflict between Russia and Ukraine heightened as a massive Russian military convoy has approached the Ukrainian capital of Kyiv. The Russian authority has warned civilians to flee from Kyiv as military operation will intensify in next few days. Moreover, Russia stepped up its shelling of Kharkiv, Ukraine’s second-largest city.
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.
In the United States, the yield on the benchmark 10-Year U.S. Treasury Note fell 12.8 basis points to 1.708% as market participants continued to shift their funds from risky assets like equities to safe haven government bonds. The yield was above 2% before the Russian army entered Ukraine. Consequently, share prices of major banks tanked.
The crude oil prices also maintained their northbound journey. The U.S. benchmark – the WTI crude – for April Contract, rose 8%, to settle at $103.21 a barrel, marking the highest for a front-month contract since Jul 22, 2014. At sessions high, the contract price jumped to 106.78. The global. benchmark – the Brent crude – rose 7.2%, to settle at $104.97 a barrel, marking the highest finish since Aug. 8, 2014.
As a result, share prices of oil giants like Occidental Petroleum Corp. (OXY - Free Report) and ConocoPhillips (COP - Free Report) have rallied 7% and 2.2%, respectively. Both stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
The Institute of Supply Management reported that the U.S. manufacturing index for the month of February came in at 58.6, beating the consensus estimate of 57.7 and January’s data of 57.6. Notably, any reading above 50 indicates expansion in manufacturing activities.
Construction Spending in January increased 1.3% in contrast to the consensus estimate of a decline of 0.1%. December’s data was revised upward from a gain of 0.2% reported earlier to a gain of 0.8%.