Stocks Lose Sharply amid Fear of Russian Military Action - InvestingChannel

Stocks Lose Sharply amid Fear of Russian Military Action



Stocks slid on Friday as increased tensions between Ukraine and Russia sent oil spiking and led investors to dump risky assets like equities.

The Dow Jones Industrials collapsed 503.53 points, or 1.4%, to 34,378.06, for a loss of more than 2% on the week.

The S&P 500 slipped 85.44 points, or 1.9%, to 4,418.64, dropping 1.8% over the last five sessions.

The NASDAQ fell 394.49 points, or 2.8%, to 13,791.15, or nearly 2.2% on the week.

Stocks moved sharply lower in afternoon trading after a jump in oil prices that appeared to be tied to increased concerns about Russia taking military action against Ukraine.

Some defense stocks moved higher after Ukraine headlines crossed. Northrop Grumman jumped about 4%. Lockheed Martin added more than 2%.

Energy stocks moves higher alongside the price of oil with the Energy Select Sector SPDR gaining 1.8%. Diamondback Energy rose 2.2% and Devon Energy added 2.6%. Exxon Mobil picked up 1.8% and ConocoPhillips gained 1.3%.

Shares of travel stocks like airlines dropped sharply. Shares of American Airlines fell 6%. Oil prices jumped, with West Texas Intermediate futures gaining 4%, as Russia is a key producer of oil and natural gas.

Semiconductor stocks, which have been volatile in part due to supply chain issues caused by COVID, were underperformers on Friday. Shares of Advanced Micro Devices and Xilinx fell about 8%.

In earnings news, shares of Newell Brands jumped 11% on Friday after the company beat estimates on the top and bottom lines for the fourth quarter. Shares of Under Armour dropped 12% after the apparel company highlighted supply chain issues in its quarterly report.

On the economic front, the University of Michigan’s preliminary consumer sentiment reading for February came in at 61.7, falling from 67.2 the previous month and missing expectations.

Prices for 10-year Treasurys gained, dropping yields sharply to 1.92%, from Thursday’s 2.05%. Treasury prices and yields move in opposite directions.

Oil prices hiked $4.08 to $93.96 U.S. a barrel.

Gold prices ballooned $26.00 to $1,863.40 U.S. an ounce.