[New York Stock Market] US Adds Sanctions Amid Ukraine Fear... Dow Falls 1.42%, Down 4 Consecutive Trading Days

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[Asia Economy New York=Special Correspondent Joselgina] As concerns over Russia's invasion of Ukraine escalated to a critical point, the three major U.S. stock indices in New York all closed lower on the 22nd (local time).

On this day at the New York Stock Exchange, the Dow Jones Industrial Average closed at 33,596.61, down 482.57 points (1.42%) from the previous session. Investor sentiment froze due to geopolitical risks surrounding Ukraine, pushing the market down for the fourth consecutive trading day. The S&P 500, centered on large-cap stocks, fell 44.11 points (1.01%) to 4,304.76, while the tech-heavy Nasdaq dropped 166.55 points (1.23%) to 13,381.52. The New York Stock Exchange was closed the previous day for Presidents' Day.

By individual stocks, Home Depot announced expected sales growth this year but still fell nearly 9% from the previous session. Macy's also declined 5% despite surpassing its best quarterly performance. Macy's revealed plans for a new $2 billion share buyback and dividend increase. Technology stocks also underperformed. Tesla dropped 4.14% from the previous session. Apple (-1.78%), Nvidia (-1.07%), Microsoft (-0.05%), Meta Platforms (-1.98%), and Amazon.com (-1.58%) also showed weakness.

On this day, the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known on Wall Street as the "fear index," surged more than 6%, approaching the 30 level.

U.S. President Joe Biden, in a speech that afternoon, declared that "Russia's invasion of Ukraine has begun," announcing sanctions targeting Russian financial institutions, national debt, leadership, and their families. The United Kingdom also imposed sanctions related to the Ukraine situation, freezing assets of five Russian banks and three oligarchs within the UK, banning transactions with UK individuals and companies, and imposing entry bans.

This followed Russian President Vladimir Putin's approval the previous day of the independence of pro-Russian separatist-controlled areas in eastern Ukraine's Donbas region and his order for Russian troops to enter. Subsequently, the Russian Federation Council approved Putin's request to deploy troops outside Russian territory.

Tom Essaye, founder of The Sevens Report, said, "The situation between Russia and Ukraine is very fluid," adding, "Tensions are rising, which will negatively impact the stock market in the short term."

Amid geopolitical tensions, the U.S. 10-year Treasury yield rose slightly to the 1.92% range, indicating a decline in bond prices.

International oil prices increased. On the New York Mercantile Exchange, March West Texas Intermediate (WTI) crude oil closed at $92.35 per barrel, up $1.28 (1.4%) from the previous session. Due to escalating geopolitical tensions between Russia and Ukraine, WTI prices surged intraday by more than 5% to as high as $96 per barrel.

On the London ICE Exchange, April Brent crude oil prices also rose more than 6% intraday to $99.44 per barrel, nearing $100. This is the highest level since September 2014.

Ed Mills, an analyst at Raymond James, stated, "Russia's actions will significantly impact political relations between Russia and the West, but major market events are unlikely in the near term," while cautioning, "We need to watch for the possibility of increased market risks."

The economic indicators released on this day were generally positive. According to information provider IHS Markit, the preliminary February Manufacturing Purchasing Managers' Index (PMI) (seasonally adjusted) was 57.5, exceeding the previous month's 55.5 and beating market expectations. The preliminary February Services PMI also improved to 56.7 from 51.2 in the previous month. A PMI above 50 indicates economic expansion.

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