All major U.S. stock indexes fell as tensions grow with Russia – USA TODAY

NEW YORK — Wall Street’s losses mounted Wednesday as world leaders waited to see if Russian President Vladimir Putin orders troops deeper into Ukraine.
The S&P 500 fell 1.8% to a 14-month low, worsening what is now the benchmark index’s second correction in two years. The technology-heavy Nasdaq lost 2.6% led by steep losses in Apple and Microsoft. The Dow Jones Industrial Average fell 1.4%. U.S. Treasury yields inched higher, as did gold prices.
A potential war in eastern Europe has added to investors’ concerns about the global economy.
Technology companies led a broad slide on Wall Street in afternoon trading Wednesday that extended recent losses for the major indexes as the crisis in Ukraine kept markets on edge.
Microsoft slid 1% and Cisco Systems fell 2.5%. The sector has an outsized influence on the S&P 500 because of Big Tech companies’ high valuations. Retailers and other companies that rely on direct consumer spending also weighed on the market. Amazon fell 2.2% and Starbucks shed 2.9%.
The losses added to Tuesday’s slump and the S&P 500’s slide into a correction. The index had its last correction in the spring of 2020, as the pandemic upended the global economy. That correction worsened into a bear market — a decline of 20% or more — as the S&P 500 sank nearly 34% in about a month.
Wall Street has been closely watching developments in Ukraine, where Russia has amassed troops for a new potential invasion. Russia has started evacuating its embassy in Kyiv. It has already sent soldiers into eastern regions of Ukraine after recognizing the independence of some rebel-held areas.
UKRAINE’S RIPPLE EFFECTS: Inflation is high and gas prices are rising. Russia’s invasion of Ukraine could push them higher.
INVESTING UNDER TURMOIL: Stocks drop after Russia starts invasion of Ukraine. Here’s how to manage your stocks during the crisis.
The U.S. and western nations have responded with sanctions and Germany withdrew a document needed for certification of the Nord Stream 2 gas pipeline from Russia. The tensions have made energy prices volatile as any conflict between Russia and Ukraine disrupt supplies.
The potential for a war in eastern Europe has only added to the concerns investors had about the global economy. Stocks have been slipping in 2022 as investors gauge how rising inflation will impact economic growth and whether the Federal Reserve’s plan to raise interest rates this year will cool inflation.


Leave a Comment