Close X
Sunday, December 1, 2024
ADVT 
International

Stocks end another bumpy day lower and crude oil prices ease

Darpan News Desk The Canadian Press, 03 Mar, 2022 02:25 PM
  • Stocks end another bumpy day lower and crude oil prices ease

Stocks ended another bumpy day lower on Wall Street and crude oil prices eased back as markets remain concerned about the broader impact of Russia’s invasion of Ukraine. The S&P 500 fell 0.5% Thursday.

The Nasdaq fell 1.6% as technology companies led the way lower. Less risky sectors like utilities gained ground. Major indexes had rallied a day earlier after Federal Reserve Chair Jerome Powell said he favored a modest interest rate increase at the Fed’s policy meeting in two weeks.

Bond yields were stable. Trading on the Moscow exchange remained closed and major credit agencies cut Russia’s credit rating.

EARLIER STORY: 

Stocks shifted between gains and losses Thursday and oil prices eased back as markets remain concerned about the broader impact of Russia's invasion of Ukraine.

The S&P 500 rose 0.1% as of 2:35 p.m. Eastern. The Dow Jones Industrial Average rose 110 points, or 0.3%, to 34,002 and the Nasdaq fell 0.9%.

Bond yields were steady. The yield on the 10-year Treasury remained at 1.86% from late Wednesday.

The broader market remains volatile as investors continue to worry about the conflict in Europe along with rising inflation and the impact on economic growth and how central banks around the world act to try and restrain inflation.

Technology companies, retailers and other companies that rely on direct consumer spending had some of the broadest losses. Sectors that are viewed as less risky, including utilities and household goods makers, gained ground.

The major indexes rallied a day earlier after Federal Reserve Chair Jerome Powell said he favored a modest interest rate increase at the Fed’s policy meeting in two weeks, bringing relief to investors who had feared he would back more aggressive moves to fight inflation.

The economic fallout from the Russian invasion expanded, with Fitch Ratings and Moody’s Ratings cutting Russia’s credit rating. They said the invasion and Western sanctions have hurt Moscow’s ability to repay debts and raised risks for the economy and stability.

The London Stock Exchange said it had suspended trading in shares of 27 companies with links to Russia, including some of the biggest in energy and steel, such as Lukoil, Gazprom, Sberbank, Rosneft and Magnitogorsk Iron & Steel Works. Those shares lost most of their value prior to the suspension. Rosneft shares dropped from $7.91 on Feb. 16 to 60 cents on March 2, while Sberbank shares plunged from $14.90 to 5 cents in that same time frame.

Trading on the Moscow exchange remained closed Thursday. Russia's ruble lost another 15% against the U.S. dollar and is worth less than 1 cent. It has plunged since Western governments imposed sanctions that cut off much of Russia’s access to the global financial system.

Russia's invasion of Ukraine has been the dominant issue for investors all week as they try to assess its global economic impact. Russia is a key oil producer and prices have been rising as global supplies remain threatened by the conflict, raising concerns that persistent inflation could become even hotter.

Leaders of OPEC and other major oil-producing countries are sticking with plans to gradually increase oil production. Meanwhile, the U.S. and other major governments in the International Energy Agency plan to release 60 million barrels from strategic reserves to boost supplies.

The price of U.S. benchmark crude oil fell 2.6% to $107.67 a barrel and Brent crude, the international standard, fell 2.2% to $110.46. Both are still up more than 17% for the week.

Rising inflation and the Fed's reaction is still a big focus for investors with the impact of the conflict uncertain. Powell gave a second day of testimony before Congress Thursday, telling the Senate Banking Committee that Russia’s invasion of Ukraine will likely further magnify the high inflation that has engulfed the U.S. economy. At the same time, Powell said he is committed to doing whatever it will take to slow inflation, underscoring the central bank's high-risk challenge in raising interest rates enough to stem inflation without tipping the economy into another recession.

Investors will get another update on the U.S. jobs market on Friday when the Labor Department releases its report for February.

“What we're poised for is to really look hard at the jobs report tomorrow to see what the Fed needs to do and the state of the economy," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “Tomorrow’s average hourly earnings will provide a good read on inflation and whether consumers are able to keep up.”

 

MORE International ARTICLES

1 killed, 6 injured in gas cylinder blast in Pakistan's Karachi

1 killed, 6 injured in gas cylinder blast in Pakistan's Karachi
The incident happened inside a multi-storeyed building in Lyari area of Karachi, the provincial capital of southern Sindh province, police officials told local media.

1 killed, 6 injured in gas cylinder blast in Pakistan's Karachi

WHO: Europe is only region with increasing COVID deaths

WHO: Europe is only region with increasing COVID deaths
 The World Health Organization says coronavirus deaths in Europe rose 5% in the last week, making it the only region in the world where COVID-19 deaths increased. The U.N. health agency said confirmed cases jumped 6% globally, driven by increases in the Americas, Europe and Asia.

WHO: Europe is only region with increasing COVID deaths

Biden-successor chatter: Harris currently not scaring any prospective opponents

Biden-successor chatter: Harris currently not scaring any prospective opponents
As Vice President Kamala Harris grapples with a portfolio of seemingly intractable issues and responsibilities that have drawn her away from the national spotlight -- she Zoomed into the infrastructure Cabinet meeting from Paris on Friday -- other Democrats have raised their own national profiles, the report said.

Biden-successor chatter: Harris currently not scaring any prospective opponents

Delta variant accounts for 99% of global Covid cases: WHO

Delta variant accounts for 99% of global Covid cases: WHO
According to Maria Van Kerkhove, the WHO's technical lead on Covid, almost all of the up to 900,000 Covid cases sequenced worldwide over the last 60 days originated from the delta strain

Delta variant accounts for 99% of global Covid cases: WHO

Covid spreads in deer and other animals in US

Covid spreads in deer and other animals in US
It's also clear that people can infect animals. Pets such as cats, zoo animals such as gorillas and snow leopards and farmed mink can all be infected. Multiple cases have been reported, and evidence of changes in the viruses infecting mink have led to mass culls of those animals on fur farms, the report added.

Covid spreads in deer and other animals in US

6 teenagers injured in Colorado shooting

6 teenagers injured in Colorado shooting
6 teenagers were injured during a shooting incident at a park in Aurora in the US state of Colorado, police said. The shooting occurred at noon on Monday at Nome Park, which is near Aurora Central High School, Xinhua news agency quoted the Aurora Police Department as saying.

6 teenagers injured in Colorado shooting