Stocks Sag on Ukraine, Fed Developments - InvestingChannel

Stocks Sag on Ukraine, Fed Developments

The S&P 500 fell on Monday to kick off an important week, as oil prices fell sharply and traders monitored the latest developments from the Ukraine-Russia war. Investors are also anticipating the first rate hike by the Federal Reserve this week.

The Dow Jones Industrials eked up 1.05 points to close at 33,945.24.

American Express surged 2.9%, being one of the index’s top gainers, another being Visa, taking on 1.8%.

The much-broader index ducked back 31.2 points to 4,173.11.

The NASDAQ Composite stumbled 262.59 points, or 2%, to 12,581.22.

Health-care stocks also rose after Shenzhen — a major city in a key manufacturing hub in China — shut down all nonessential businesses and impose city-wide testing due to the COVID-19 outbreak.

The sector gained 1.9%, led by Moderna and Pfizer. Shares of Moderna gained 10.5%, and Pfizer advanced 3.6%.

Fighting has intensified around Ukraine’s capital, Kyiv, while Russian forces bombard cities across the country, killing civilians who are unable to escape. The financial fallout of stiff Russian sanctions will come into sharper focus in the coming days ahead of a scheduled sovereign bond payment.

Shares of energy companies fell with oil prices. Devon Energy dropped 10.1% and Coterra Energy fell 9.75%. The Energy Select Sector SPDR Fund was lower by 2.99%.

The Fed is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting Wednesday. Investors are also looking to the central bank for its new forecasts for rates, inflation and the economy, given the uncertainty from the escalated geopolitical tensions.

Treasury prices swooned, raising yields 2.14% from Friday’s 2%. Treasury prices and yields move in opposite directions.

Oil prices descended $7.61 to $101.72 U.S. a barrel.

Gold prices jettisoned $30.20 to $1,954.80 U.S. an ounce.

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