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Oil jumps, shares fell after the Dow introduced the correction

The S&P 500 fell 0.4% and the Dow Jones Industrial Average blue-chip fell 0.2%. The high-tech Nasdaq Composite, the first major index to fall in bear market territory, fell another 0.4% on Tuesday morning.

Abroad, the Stoxx Europe 600 fell 0.3%.

Investors are facing tremendous uncertainty, driven by headlines that are arriving minute by minute, said Naeem Aslam Ava Trade analyst. The consequences of oil sanctions will affect the global economy, he said, and will affect everything from energy to banking to consumer spending. “The light is not there,” he said.

U.S. crude oil rose 7.3% to $ 128.43 a barrel after The Wall Street Journal reported that the United States would immediately announce a ban on Russian oil imports.

Investors are working to study Russia’s broader impact of the invasion of Ukraine and the hardening of the Western response. Market volatility has risen as relations between the West and Russia hit new lows, while commodity prices have risen as global growth may take a hit and hinder interest rates for central banks seeking to control inflation by raising interest rates.

Despite a keen interest in assets that are perceived as paradise, investors sold their U.S. Treasury notes on Tuesday. The benchmark 10-year banknote yield rose to 1.842% from 1.748% on Monday. Bond yields and prices move in opposite directions.

“While there is still an element of safe haven trade, this is being overshadowed by inflation concerns,” said Seema Shah, chief strategist at Principal Global Investors.

Gold rose 2.8% to $ 2,053.10 a troy ounce, off a record high.

The most significant move, however, was in the nickel market. Nickel prices roughly doubled to an unprecedented height on Tuesday as the Ukrainian war sparked concerns about disruptions to the supply of metal, a disruption to the supply of metal that is a key component of electric vehicle batteries. The London Metal Exchange suspended the nickel trade after wild price action.

Mandiant dropped nearly 3.5% after Alphabet before the initial bell‘s

Google said the cybersecurity company had agreed to buy about $ 5.4 billion. Uber rose 5.2% The Wall Street Journal reported that the travel hailing company launched a campaign to counter its efforts to classify its employees as employees, which would allow them to form unions.

On Monday, the Dow Jones index entered the correction territory for the first time in two years, the Nasdaq Composite index fell in the bear market and the S&P 500 had its worst one-day decline in a year and a half.

“I would say the market is in a state of shock. Seeing the tectonic change we’ve seen, everyone is guessing what the final game might be, ”said Brian O’Reilly, head of marketing strategy at Mediolanum International Funds.

The Dow Jones Industrial Average closed the correction territory on Monday for the first time in two years.


Photo:

Courtney Crow / Zuma Press

The main impact has been on the commodity markets, due to Russia’s role as a resource producer. The price of oil, natural gas, and raw materials in metals and grains (e.g., metals and grains) has risen, and as pressure on companies and households increases, inflation is expected to rise rapidly. Concerns that the U.S. may be ready to ban Russian oil imports have raised the price of crude oil, fueling fears of a recession.

“Not all of the recession has been caused by rising oil prices, but every rise in oil has caused a recession,” Mr O’Reilly said. “This is likely to be a long-term affair and will have a lasting impact on commodity prices.”

In Asia, the stock market fell after a move on Wall Street on Monday. Japan’s Nikkei fell 225% to 1.75, and Hong Kong’s Hang Seng index fell 1.4% to its lowest level since 2016.

Since Russia invaded Ukraine, the United States and its allies have imposed severe sanctions on Russia. WSJ’s Shelby Holliday delves into how all these punishments affect everyone, President Vladimir Putin, to ordinary Russian citizens. Photo: Pavel Golovkin / Associated Press

Write to Will Horner at william.horner@wsj.com

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Oil jumps, shares fell after the Dow introduced the correction

Source link Oil jumps, shares fell after the Dow introduced the correction

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