Stocks New York: Dow suffers after Russian attack

NEW YORK (dpa-AFX) – Russia’s attack on Ukraine kept Wall Street investors in suspense on Thursday. The Dow Jones Industrial headed for the sixth consecutive day of losses at a discount of 1.76 percent to 32,547.43 points with two hours to go. Within a week it has already lost almost seven percent because of the conflict, which is now also being conducted militarily. The price gains that he had made since March 2021 have now evaporated.

Stock markets around the world tumbled on Thursday after Russia launched an invasion. There was a slump in Europe in particular, but the New York stock exchanges had already lost feathers the day before. The market-wide S&P 500 lost 0.81 percent on Thursday to 4191.38 points. Stocks from the financial sector in particular were among the big losers.

The tech-heavy Nasdaq 100 on the other hand stood out positively. After its particularly sharp descent so far this year, it worked its way up 0.51 percent to 13,578.46 points. Investors speculated that the Ukraine conflict could put the brakes on the monetary tightening course of the central banks again. The tech industry is considered to be relatively dependent on low interest rates.

Attacks from different directions were reported by several parties, including Ukraine itself and NATO Secretary General Jens Stoltenberg. “The Russian invasion of Ukraine is a serious geopolitical crisis with far-reaching implications,” said Bank Berenberg analyst Kallum Pickering. It will hurt near-term economic performance, particularly in Europe, and give global investors an additional impetus to reduce risk exposure.

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Company-specific news only played second fiddle in the face of the market-wide swings. American economic data also faded into the background in view of the war. The US economy grew a little more strongly than previously known in the autumn and, based on the initial jobless claims, the situation on the labor market improved more than expected on a weekly basis.

The market fears that the rise in oil and gas prices in the wake of the Ukraine crisis will further increase international inflationary pressure. Initially, US oil stocks were supported again on Thursday, but over the course of the day they also turned negative after their good run. In the Dow, for example, Chevron shares recently lost 1.9 percent.

The international financial sector in particular was affected by the aggravated situation. In addition to general concerns about the consequences of the tensions and sanctions, sector stocks also suffered from speculation that the central banks could now reconsider their monetary policy leeway. Up until a few days ago, financial stocks were still in high demand on the prospect that high inflation will drive interest rates higher.

In New York, this resulted in JPMorgan shares falling 4.7 percent at the Dow end. The papers of other industry giants such as Citigroup, Bank of America and Wells Fargo lost up to six percent.

In contrast, among technology stocks, many recovered from their early losses. The papers from Microsoft, Intel and Salesforce, with gains of between 1.7 and 4.8 percent, were the most recent among the few Dow winners.

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The Ebay shares reduced an initially much clearer price slide to 0.7 percent most recently after the online trading platform had given a disappointing sales outlook for the current quarter.

The shares of the travel booking provider Booking Holding came under particularly heavy pressure on the Nasdaq, which collapsed by almost ten percent according to its figures. On the market it was said that the fourth quarter was actually okay. However, expert Mario Lu from the British bank Barclays referred to a disappointing margin outlook.

Alibaba’s stocks traded in New York lost about four percent. China’s Amazon competitor reported the slowest sales growth for the past quarter since China’s leadership tightened control of the domestic tech sector. Under these circumstances, Chinese Internet stocks listed in New York generally came under pressure.

Things were looking better at Moderna, with the vaccine manufacturer’s shares recovering by 12.5 percent from their recent slide to their lowest level since April 2021. The biotech company continues to make good money on its corona vaccine, as the latest interim report showed. In addition, the Biontech rival slightly raised the sales forecast for its corona vaccine for 2022. The Biontech shares increased by six percent.

Otherwise, US armaments companies were also discussed as potential beneficiaries of the war situation. However, the reaction of investors in New York among the sector stocks was not unambiguous: the shares of Lockheed Martin were moderately up 0.3 percent, but those of Raytheon, for example, were down 0.2 percent.

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