Stocks declined on Tuesday following the S&P 500’s worst day since October 2020, as investors continue to assess geopolitical tensions between Russia and Ukraine and high commodity prices.
The Dow Jones Industrial dumped 184.74 points to 32,632.64, falling deeper into correction territory.
Tuesday’s losses put the Dow 2.9% in the red for the week.
The S&P 500 settled 30.39 points to 4,170.70.
The NASDAQ Composite shed 35.41 points to 12,795.55.
Investors continue to grappled with surging commodity prices and slowing economic growth stemming from Russia’s invasion of Ukraine. Rising prices for oil, gasoline, natural gas, and precious metals like nickel and palladium are fueling concerns about a slowdown in global growth amid surging inflation.
The energy sector was a bright spot on Tuesday amid surging oil prices. Shares of Chevron rose 5.2%. Plus, solar and other clean energy stocks moved higher as the continued rise in oil prices shifted focus toward alternative energy sources. Enphase Energy leaped 10.8% and SunPower added 18.7%.
Shell apologized for buying cheap Russian oil and said it was divesting itself of all hydrocarbon holdings in the country. Russia itself warned that crude prices could hit $300 a barrel should Western countries enact a ban on exports. Shell shares popped 3% on Tuesday.
Tuesday’s losses put the Dow 2.9% in the red for the week so far.
Airlines and cruise lines also advanced. Delta Air Lines rose 3.7% and American Airlines popped 5.2%. Southwest added 5.3%, and United Airlines climbed 3.3%. Norwegian Cruise Line also rose 3.8%. Futures for palladium, a key metal in the manufacture of electronics, jumped another 5% to $3.04 an ounce, while platinum futures rose nearly 3% to $1,149.70 U.S. an ounce.
Prices for the 10-year Treasury plummeted, raising yields to 1.85% from Monday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices popped $5.44 to $124.84 U.S. a barrel. Gold prices brightened $61.90 to $2,057.80 U.S. an ounce.