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S&P 500 Falls Slightly as Investors Assess Latest with Russia-Ukraine War, Higher Energy Prices

Tiger Newspress2022-03-07

U.S. equity futures fell Monday morning, but traded off their lows, as U.S. oil prices pulled back from their highest level since 2008 amid the ongoing war between Russia and Ukraine.

Dow futures lost about 100 points, or 0.3%, while S&P 500 futures and Nasdaq 100 futures slid 0.2% and 0.2%, respectively. Futures came off their lows as oil prices came off their highs from overnight.

West Texas Intermediate crude futures, the U.S. oil benchmark, traded 6.3% higher to $122.96 per barrel, earlier hitting $130 per barrel at one point before pulling back partially. The international benchmark, Brent crude, traded 6.24% higher to $125.51 per barrel after earlier spiking to $139.13 per barrel — its highest since July 2008.

Oil stocks rose in premarket trading alongside the price of oil. Phillips 66 rose 3% and Baker Hughes added 3.6%. Valero Energy and ConocoPhillips rose 2% each.

“The equity market is wrestling with the large commodity supply shock, including notably oil prices, and concerned that this could be morphing into a stagflationary shock instead of just an inflation shock,” said Kathy Bostjancic, chief U.S. economist at Oxford Economics. “Equities will be keying off changes in oil prices and the prospects of an oil embargo from Russia.”

Secretary of State Antony Blinken said Sunday that the U.S. and its allies are considering banning Russian oil and natural gas imports in response to the country’s attack on Ukraine.

House Speaker Nancy Pelosi also said in a letter to Democratic colleagues that the chamber is “exploring strong legislation” to ban the import of Russian oil — a move which would “further isolate Russia from the global economy.”

Gas prices surged to their highest level since 2008, with the national average hitting $4.06 a gallon, according to AAA.

Despite the move away from risk, government bond yields rose, indicating less demand for safe-haven assets. The benchmark 10-year Treasury note was most recently at 1.76%, up nearly 4 basis points on the session as inflation worries pushed yields up.

Still, bank stocks were among the biggest early losers, with Citigroup down 3.9% and U.S. Bancorp down nearly 3% as economic pressure weighed on the financial sector.

One of the big winners on the morning was Bed, Bath & Beyond, which soared more than 75% premarket after GameStop Chairman Ryan Cohen revealed he had a nearly 10% stake in the retailer, through his investment company RC Ventures.

Planned evacuations Saturday from the cities of Mariupol and Volnovakha were canceled after Russia violated a cease-fire agreement and fighting continued in or around both cities. Mariupol City Council said Sunday that Russia had again violated a second attempt at a temporary cease-fire that would enable its civilians to leave.

Positive data from the U.S. Labor Department wasn’t enough for investors to shrug off concerns about the war between Russia and Ukraine. On Friday the Bureau of Labor Statistics reported the economy added 678,000 jobs in February. The monthly jobs gain topped economists’ expectations of 440,000 as gauged by Dow Jones. The unemployment rate slipped to 3.8%.

Last, the Dow and S&P 500 slid about 1.3%. The Dow notched its fourth losing week and the S&P 500 closed in correction territory on Friday, down more than 10% from its record close. The Nasdaq Composite lost roughly 2.8% and is also in a technical correction.

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Comment61

  • LimLS
    ·2022-03-08
    High oil prices are always bad for the economy and market. Hopefully the war will end soon and oil prices goes back down. Oil prices push too high, it might just tip the market over and start a crash. Nobody want to see that happening...
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  • AhGirl
    ·2022-03-08
    👌🏻
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  • Goodmeng
    ·2022-03-08
    Like
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  • RDPD富爸穷爸
    ·2022-03-08
    There's been some talks about stagflation by some economists if this Russia Ukraine crisis dragged on. Stagflation refer to a period of slow economic growth accompanied by rising prices of goods and services i.e inflation. Let's hope we don't get there. Market will continue to be volatile in view of these uncertainties. As always, stick to your investment plan but do not let fears affect your decision on investing 💪👍
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  • Tmchoo
    ·2022-03-08
    .
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  • Simonnov
    ·2022-03-08
    Ture ture 
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  • Simonnov
    ·2022-03-08
    Tire tire
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  • Jess261
    ·2022-03-08
    Okay
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  • WaiSiong81
    ·2022-03-08
    👍
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  • time to eat
    ·2022-03-08
    Just buy
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  • FT585
    ·2022-03-08
    Like 
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  • PoofyMush
    ·2022-03-08
    Ouch more pain ahead
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  • PearlynCSY
    ·2022-03-08
    Dow drops nearly 800 points as market turmoil continues from Russia-Ukraine war, inflation fears. The S&P 500 declined close to 3% to 4,201.09, falling deeper into correction territory. The 500-stock average sits more than 12% from its record close. Stocks fell again on Monday, following four straight weeks of declines, as investors grew increasingly concerned higher energy prices stemming from the Russia-Ukraine conflict would slow the economy and raise inflation. Effectively, DJIA & S&P 500 have dropped double digit to 10% this year, and NASDAQ has dropped around 20%. Very bad news for the start of 2022. Besides, U.S. crude oil has spiked to 13-year high of $130.
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  • Fatfish
    ·2022-03-08
    I bought some s&p etf and it dropped more. [Speechless] Is not possible to time the market for the deepest. Just take a ride on this discounted prices from its peak. Be it 6/8/10% down, it is still discounted. Just hold for the long term.
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  • Targarean
    ·2022-03-08
    Good time to catch up on reading or tv or just sleep
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  • Wtt
    ·2022-03-08
    Nice
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  • Andy Fong
    ·2022-03-08
    Thanks
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  • Huat1333
    ·2022-03-08
    Supports [Like] [Like] [Like] 
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  • Huat1333
    ·2022-03-08
    Waiting [Miser] [Miser] [Miser] 
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  • Success88
    ·2022-03-08
    Thank for the drop 
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