Nasdaq Shows Substantial Turnaround, Dow Remains Firmly Negative
The major U.S. stock indexes all moved sharply lower at the start of trading on Thursday but have turned mixed over the course of the session.
The tech-heavy Nasdaq has shown a substantial turnaround, climbing into positive territory after falling as much as 3.4 percent. Currently the Nasdaq is up 128.63 points or 1 percent at 13,166.11.
Meanwhile, the Dow and the S&P 500 have climbed off their worst levels but remain in the red. The Dow is down 472.58 points or 0.4 percent at 32,659.18 and the S&P 500 is down 17.01 points or 0.4 percent at 4,208.49.
The turnaround by the Nasdaq reflects bargain hunting after the index hit its lowest intraday level in almost a year, with big-name tech stocks showing significant rebounds.
The initial sell-off on Wall Street came as the fears of a Russian invasion of Ukraine become a reality, with Russian Vladimir Putin declaring war on the neighboring country late Wednesday night.
Rather than focusing on contested regions in the eastern part of the country as some had expected, Putin has seemingly launched an all-out invasion of Ukraine.
Reports of explosions and Russian troops crossing the border have come in from across Ukraine as part of what could be a prolonged campaign.
U.S. President Joe Biden and other world leaders have condemned Russia for the “unprovoked and unjustified attack,” which Biden predicted would cause a “catastrophic loss of life and human suffering.”
“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way,” Biden said in a statement. “The world will hold Russia accountable.”
Biden recently announced additional sanctions intended to limit Russia’s ability to be part of the global economy, finance its military and compete in the high-tech 21st century economy.
Sector News
Banking stocks continue to see substantial weakness in afternoon trading, with the KBW Bank Index plunging by 4.9 percent after hitting its lowest intraday level in two months.
Significant weakness has also emerged among oil stocks, which have come under pressure as the price of crude oil gives back ground after an earlier spike.
With crude for April delivery up $1.85 at $93.95 a barrel after reaching a high of $100.54 a barrel, the NYSE Arca Oil Index is down by 3.3 percent.
Steel stocks also continue to considerable weakness on the day, resulting in a 3.1 percent nosedive by the NYSE Arca Steel Index.
Tobacco, computer hardware and airline stocks also remain sharply lower, while notable strength has emerged among housing and networking stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Thursday. Japan’s Nikkei 225 Index tumbled by 1.8 percent, while Hong Kong’s Hang Seng Index plunged by 3.2 percent.
The major European markets also showed substantial moves to the downside on the day. While the German DAX Index has plummeted by 4 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index dove by 3.9 percent and 3.8 percent, respectively.
In the bond market, treasuries have pulled back well off their best levels but continue to see notable strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.1 basis points at 1.936 percent.
Source: Read Full Article
