March 30, 2022
By Chuck Mikolajczak
NEW YORK (Reuters) – US stocks fell on Wednesday, with the Dow and S&P 500 well on track to win a winning four-day series as recent signs of progress in Ukraine-Russia peace talks weakened amid a strong rally. central bank suffering economic growth.
Russian forces bombed the outskirts of Kiev and a besieged city in northern Ukraine on Wednesday, a day after they promised to limit operations there to what the West rejected as a reconstruction ploy by heavy-duty invaders.
While the S&P recovered more than 5% in March after starting the year with two consecutive monthly declines, the benchmark is well on its way to its first quarterly drop since the first quarter of 2020, when it was the COVID-19 pandemic in the United States. States reaching full swing.
Even with the recent rise, stocks have been particularly sensitive to securities about any progress on a deal to resolve Russia’s invasion of Ukraine, with already high inflation further fueled by rising commodity prices such as oil and gas. metals since the beginning of the war.
“Ukraine is the control narrative for this market, if we are to reach a settlement and have the opportunity from this settlement for lower energy prices, which is really the key, and then some kind of return to normalcy as far as the world economy is concerned. which is really positive for the market, “said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
“If not, we will continue to go back and forth as the market tries to digest the winners and losers, because there are many unintended consequences of this war,” Meckler added.
The Dow Jones Industrial Average fell 146.09 points or 0.41% to 35,148.1, the S&P 500 lost 34.42 points or 0.74% to 4,597.18 and the Nasdaq Composite fell 153.71.76 % at 35,148.6% or 0.74% at 4,597.18 points.
The environment of sharp price increases has led to speculation that the US Federal Reserve may need to become more aggressive in raising interest rates to curb high inflation, which would be a deterrent to economic growth.
In a reversal of its performance at Tuesday’s meeting, the S&P energy index was the leading sector in the positives and has now risen almost 40% year-on-year, which would mean its strongest quarterly performance ever.
The sector is currently one of only three positives in the year and has well outperformed the next one with the highest return on utilities, which grew by almost 4% year-on-year, but hit a record high on Wednesday for the fourth consecutive year. meeting, as investors favor defensive and valuable stocks.
Recent messages in the bond market, which often serve as precursors to a recession, with parts of the yield curve reversed, have helped fuel a defensive stance among investors as concerns that the Fed may become too aggressive and make a policy mistake.
However, economic data showed that the labor market remains strong, as the ADP National Employment Report showed that private wages rose by 455,000 jobs last month after rising by 486,000 in February. The figures come ahead of Friday’s key payroll report.
Lululemon Athletica Inc rose 11.09% after forecasting year-over-year earnings and earnings above estimates as demand for sportswear remains strong.
The falling issues outperformed the NYSE by 1.17 to 1. On the Nasdaq, the 1.72 to 1 ratio favored the downtrend.
The S&P 500 hit 43 new 52-week highs and no new lows. the Nasdaq Composite recorded 50 new highs and 31 new lows.
(Report by Chuck Mikolajczak · Edited by Will Dunham)
Wall Street is receding as hopes for Russia-Ukraine progress fade
Source link Wall Street is receding as hopes for Russia-Ukraine progress fade