[New York Stock Market] Another Drop Due to Ukraine Tensions... Dow Falls 1.9% This Week Alone

[Image source=Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] As geopolitical tensions surrounding Russia and Ukraine continue, major indices on the U.S. New York stock market closed lower across the board on the 18th (local time). On a weekly basis, this marks the second consecutive week of decline.

On this day, the Dow Jones Industrial Average closed at 34,079.18, down 232.85 points (0.68%) from the previous day. The S&P 500, which focuses on large-cap stocks, fell 31.39 points (0.72%) to 4,348.87, while the tech-heavy Nasdaq dropped 168.65 points (1.23%) to 13,548.07.

All three major indices slid more than 1% over the week. This market movement is attributed to the heightened geopolitical tensions surrounding Ukraine. The Nasdaq’s decline over the past five trading days was 1.79%, and it has fallen 13.40% since the beginning of the year. The Dow and S&P 500 declined 1.90% and 1.58%, respectively, this week.

Local media cited U.S. senior officials reporting that a Russian invasion could occur within days. NBC News reported that U.S. President Joe Biden plans to deploy additional troops to the Ukraine region. President Biden is scheduled to deliver a speech regarding the Ukraine situation after a call with Atlantic alliance leaders in the afternoon.

The immediate threat of a Russian invasion has spread a sense of crisis, leading to a marked risk-averse sentiment.

By sector, energy stocks showed weakness. APA and Schlumberger fell approximately 1% and 2%, respectively. ExxonMobil also closed down 1.11%. Technology stocks also slid across the board. Tesla and Nvidia closed down 2.21% and 3.53%, respectively, compared to the previous session. Apple and Meta Platforms also dropped nearly 1%. Intel fell more than 5%.

Streaming company Roku’s stock plunged 22.29% after releasing disappointing earnings. Shake Shack fell 4.14% despite a smaller-than-expected quarterly loss, as its first-quarter revenue forecast fell short of expectations.

The yield on the U.S. 10-year Treasury note fell to the 1.91% range. Treasury yields move inversely to prices. The spread of safe-haven demand is interpreted as investors flocking to U.S. Treasuries.

Investors also closely watched concerns about Federal Reserve (Fed) tightening on this day.

John Williams, President of the New York Federal Reserve Bank, attending a conference hosted by Rutgers University, expressed support for a rate hike in March. However, he did not specify the size of the increase. Charles Evans, President of the Chicago Federal Reserve Bank, speaking at the “U.S. Monetary Policy Forum” hosted by the University of Chicago Booth School of Business, said, “The current monetary policy stance is wrong,” and that significant adjustments will be needed depending on inflation this year.

Despite geopolitical tensions, international oil prices continued to decline, focusing on the possibility of restoring the Iran-West nuclear agreement (JCPOA - Joint Comprehensive Plan of Action), similar to the previous day. On the New York Mercantile Exchange, March West Texas Intermediate (WTI) crude oil prices closed at $91.07 per barrel, down about 69 cents (0.75%) from the previous session.

This content was produced with the assistance of AI translation services.