Devik Jain and Noel Randewich

(Reuters) – Wall Street crashed at Friday’s end due to volatility caused by the conflict in Ukraine. This was despite an increase in U.S. job growth that indicated strength.

Most of the 11 major S&P sector indexes declined, with financials falling the most, with a loss of 2.6%. As investors fret about the impact of sanctions against Moscow by the West on international financial systems, the banks index suffered a 4.2% drop. [US/]

Globally, equity markets were less resilient after Russia seized Europe’s largest nuclear power station in what Washington described as a reckless attack that could lead to catastrophe.[MKTS/GLOB]

Labor Department closely monitored employment reports showed that jobs rose by more than was expected by 678,000 people last month, and that unemployment fell to 3.8%. This is the lowest rate since February 2020.

“Three to four weeks ago we would have thought this number was very important. However, given the context and all the events in Europe it is just not”, said Zachary Hill from Horizon Investments Charlotte, who heads portfolio management.

Hill stated that investors are being consumed by the “potential for escalation of the hot war,” the potential growth impact in Europe, more generally, as well as knock-on effects to the commodity channel, inflation, and other potential risks.

Amazon.com Inc (NASDAQ):, Apple Inc (NASDAQ :), Google Inc (NASDAQ :), owner-Alphabet Inc Microsoft Corp All (NASDAQ:) stocks fell more than 1 percent. Nvidia Corp (NASDAQ:) fell 4.4%

Oil prices rose due to Western sanctions on Russia, an important oil producer, as a result of the Ukraine crisis. The sector of energy saw an increase of 1.4%, and the week was forecast to conclude with a gain close to 8%.

Richly valued growth stocks have faced the brunt of the selloff so far this week, with the S&P 500 growth index down about 2%. Thanks to rising energy shares, its value counterpart saw a lesser fall of 0.9%.

Jerome Powell, the Federal Reserve Chair, stated this week that he supports a 25 basis-point increase in interest rates at the central bank’s March 15-16 policy meetings and is “ready to move more aggressively later” if inflation doesn’t abate as quickly as expected.

Inflation fears have been raised by the sanctions against Russia, which has led to a rise in commodity prices. This could lead to Fed raising interest rates even more aggressively.[O/R]

In afternoon trading, the was down 1.12% at 33,416.32 points, while the S&P 500 lost 1.27% to 4,308.08.

It fell to 13,276.72 from 13,293.

Wall Street’s fear gauge was also known as the CBOE Volatility Index, which rose to 32.99.

Gap Inc (NYSE) was down 1%, despite its optimistic outlook for 2022 earnings.

The NYSE had declining securities by a 2.61-1 ratio, while Nasdaq saw a 2.97-1 ratio favoring decliners.

The S&P 500 posted 33 new 52-week highs and 25 new lows; the Nasdaq Composite recorded 29 new highs and 353 new lows.