Business

Stock futures plunge amid soaring oil prices and conflict in Ukraine

Traders on the floor of the NYSE, February 28, 2022.

Source: NYSE

Stock futures fell early Wednesday morning as oil prices continued to climb amid the ongoing dispute between Russia and Ukraine.

Futures linked to the Dow Jones Industrial Average lost 61 points, or 0.18%. S&P 500 and Nasdaq 100 futures also fell 0.28% and 0.37%, respectively. All three futures had previously traded in positive territory.

The downward moves in futures came as oil prices continued to climb. Both US and international benchmark Brent crude futures rose more than 7% each.

Earnings boosted several stocks in extended trades. Nordstrom jumped almost 35% on strong earnings while SoFi jumped around 18%.

In regular trading, the Dow Jones fell 597 points, or 1.76%. The S&P 500 lost 1.55% and the Nasdaq Composite slipped 1.59%.

“This dramatic dislocation is due to a flight to safety where U.S. production is considered more reliable than other global sources,” Jay Hatfield, Founder and CEO of Infrastructure Capital Advisors, said of the WTI surge. . “However, this is unlikely to persist after the situation in Ukraine stabilizes.”

CNBC Pro Stock Picks and Investing Trends:

Investors are watching oil prices closely, which could spur inflation, stifle the economy and create challenges for the Federal Reserve when shaping policy.

Energy stocks were a bright spot in the market on Tuesday, while banking stocks took a hit, led by a sharp drop in Treasury yields, representing a flight to safe-haven bonds amid market turbulence.

The benchmark 10-year note fell below 1.7% several times during Tuesday’s session.

Fed Chairman Jerome Powell will testify before Congress on Wednesday to give his semi-annual monetary policy update. As fears over Russia’s invasion of Ukraine cause turmoil in the financial world, Wall Street has quietly lowered its expectations for Fed action.

Powell is now tasked with telling Congress this week that the central bank will do more to control inflation at a time when markets expect it to do less.

CNBC Pro Stock Picks and Investing Trends:

Investors are also eagerly awaiting ADP employment data due out Wednesday, as well as mortgage application numbers.

President Joe Biden will deliver his first State of the Union address on Tuesday evening. Investors may be tuned in to updates on his economic agenda, though the global response to the conflict in Ukraine is likely to dominate instead.

Earnings season continues with several tech companies set to report on Wednesday. Okta, Pure Storage and C3 AI will report after market close. ChargePoint must also signal after the bell.

Stock futures plunge amid soaring oil prices and conflict in Ukraine

Source link Stock futures plunge amid soaring oil prices and conflict in Ukraine

Back to top button