[New York Stock Market] "Can't Trust Putin" Decline Amid Prolonged Ukraine Crisis... Nasdaq Down 2.18%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] As Russia's invasion of Ukraine continues, major indices on the U.S. New York Stock Exchange closed lower on the 11th (local time). The New York Stock Exchange, which started higher on news that Russian President Vladimir Putin announced some progress in negotiations with Ukraine, later gave up expectations and turned into a downtrend.

On Friday, the Dow Jones Industrial Average closed at 32,944.19, down 229.88 points (0.69%) from the previous day. The S&P 500 index fell 55.21 points (1.30%) to 4,204.31, and the Nasdaq index closed at 12,843.81, down 286.15 points (2.18%). The Russell 2000 index, which focuses on small-cap stocks, also dropped 32.00 points (1.59%), breaking below the 2,000 mark.

On a weekly basis, the Dow recorded a loss for the fifth consecutive week. The large-cap focused S&P 500 and tech-heavy Nasdaq indices also posted declines for the second consecutive week.

By individual stocks, weakness in technology shares was confirmed. Tesla fell 4.95% from the previous close, breaking below the 800 level. Apple dropped 2.22%, Nvidia fell 2.07%. Microsoft (-1.37%), Meta Platforms (-3.59%), and Alphabet A (Google, -1.78%) also showed declines.

Amazon's stock, which had surged more than 5% the previous day on news of a stock split, fell slightly. Rivian's stock plunged more than 7% after its fourth-quarter earnings missed expectations. DocuSign also plummeted 20% after releasing its earnings guidance.

Investors focused on the situation of Russia's invasion of Ukraine, additional sanctions by the West, and the resulting economic impact. President Putin, meeting Belarus President Alexander Lukashenko who visited Moscow, said, "Our negotiators have told me that there are certain positive changes in the negotiations (between the two sides)." Following this, European markets closed higher, and the New York Stock Exchange also started on an upward trend with expectations, but soon turned into a downtrend as no additional signs related to a ceasefire were confirmed.

Ryan Detrick of LPL Financial said, "Stocks declined as hopes for a ceasefire turned into disappointment." Jim Paulsen, Chief Investment Strategist at RoyHolt Group, evaluated, "Since some of Putin's previous statements turned out to be meaningless, it is uncertain how much weight to put on them." However, Bank of America (BoA) suggested the possibility that the stock market slump caused by the Ukraine war has bottomed out, pointing out that the S&P 500 index is down 12% from its previous high.

The U.S. and the EU announced additional sanctions against Russia on the same day. Along with the Group of Seven (G7) and NATO member countries, the main point is to revoke Russia's "Permanent Normal Trade Relations" (PNTR) status, which grants most-favored-nation treatment. This is seen as providing grounds to impose high tariffs on Russian products.

International oil prices showed an upward trend. On the New York Mercantile Exchange, the April West Texas Intermediate (WTI) crude oil price closed at $109.33 per barrel, up $3.31 (3.1%) from the previous session. This was due to ongoing supply concerns amid news that nuclear talks between Iran and the JCPOA (Joint Comprehensive Plan of Action) parties have stalled. WTI prices fell 5.5% over the week. The previous week saw a 26% surge in WTI prices due to Western energy sanctions.

On the same day, palladium futures fell more than 3% from the previous session. Gold (-0.57%), copper (-0.99%), and platinum (-0.23%) also showed slight declines.

Investors are also watching the Federal Reserve's tightening moves ahead of next week's Federal Open Market Committee (FOMC) regular meeting. The market sees more than a 90% chance that the Fed will raise the benchmark interest rate by 0.25 percentage points at this meeting.

With the U.S. consumer price index hitting a 40-year high again the previous day, inflation concerns are spreading. The University of Michigan Consumer Sentiment Index released on the same day fell from 62.8 in February to 59.7 in March. Amid growing inflation worries, weak indicators have further raised fears of a recession. Goldman Sachs stated in a report released the previous day that the risk of the U.S. entering a recession next year is between 20% and 35%.

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