The New York Stock Exchange ended a gloomy session on Monday with a sharp decline, worried about rising oil prices, as well as the impact on the global economy of the war in Ukraine and sanctions against Russia.
In the final results at the close, the Dow Jones lost 2.37% to 32,817.38 points.
The Nasdaq fell below 13,000 again, just as it did on the eve of the Russian invasion on February 23rd. The technology index fell 3.62% to 12,830.96 points.
The S&P 500 fell 2.95% to 4201.09, mostly in a correction zone, the broader index down more than 10% year to date.
“Global markets remain jittery and risk-averse due to the war in Ukraine,” Schwab analysts said.
“Nervousness continues to grow on an inflationary backdrop that is getting worse due to the continued surge in oil prices,” they added.
A barrel of Brent oil from the North Sea fell $140 at the start of the Asian session and ended up up 4.31% to $123.21.
As for the West Texas Intermediate (WTI) barrel, it closed at $119.40 after crossing $130 earlier in the session.
Russia warned on Monday of “catastrophic consequences” for the global market of the imposition of a Western embargo on Russian oil, discussed by Washington and the European Union as a response to Moscow’s military intervention in Ukraine.
“It is clear that the refusal to buy Russian oil will lead to catastrophic consequences for the world market,” Russian Deputy Prime Minister for Energy Alexander Novak threatened.
The White House said that President Joe Biden “has not made a decision at this stage” on a possible embargo on Russian gas and oil supplies.
Germany, in particular, opposes any embargo on Russian gas, on which it is very dependent, while the United States imports some Russian oil products (8% of their imports).
This competition for exports from Russia, a major oil producer, caused stock sales to pick up late in the session.
“One of the reasons the indexes have increased their losses at the end of trading is that there seems to be a united front in Congress in favor of a ban on Russian oil imports, a measure that could be introduced on Tuesday,” said Peter Cardillo. from Spartan Capital. AFP.
“If this is true, then oil prices will continue to rise, and this calls into question the growth rate,” the analyst warned.
The conflict in Ukraine also weighed heavily on the euro, which dropped to $1.0806 in the session, while the dollar hit a nearly two-year high against major currencies.
In the rankings, except for energy (+1.57%) and utilities (+1.31%), all sectors of the S&P 500 ended in the red, including -4.80% in consumer goods, as runaway inflation threatens.
Communications services, communications technology and the financial sector fell more than 3.50%.
The prospect of higher fuel prices has led cruise line stocks such as Royal Caribbean (-9.09%) and Norwegian Cruise (-11.56%) to fall.
Same worries about the cost of kerosene, which saw airlines such as Delta Airlines (-12.78% to $30.11) and United Airlines (-15% to $31.20) drop.
While the sector will be affected by the sanctions, major semiconductor manufacturers fell sharply such as AMD (-5%), Nvidia (-6.91%), Qualcomm (-7.49%).
Nasdaq heavyweights such as Amazon (-5.62% to $2749.06), Meta (Facebook, -6.29% to $187.47) and Google (Alphabet, -4.28% to $2529.29) were also affected. dollars).
Visa (-4.79% to $190.70), Mastercard (-5.39% to $312.92) and Paypal (-6.31% to $93.61) also fell after announcing the suspension of their operations in Russia.
A rare ray of sunshine in the square, home improvement chain Bed Bath and Beyond had an unprecedented session, climbing 34.18% to $21.71 after GameStop boss Ryan Cohen revealed he owns nearly 10% of the company.
The Vix index, which reflects market concerns and volatility, hit its highest level since Joe Biden took over the White House in January 2021.