Stock futures dip after the S&P 500’s worst day since October 2020 amid Russia-Ukraine war
Traders in the NYSE Floor, March 2, 20,22.
Stock futures fell slightly in overnight trading Monday following the S&P 500’s worst day since October, as investors remained on edge about surging oil prices and slowing economic growth amid Russia’s invasion of Ukraine.
The Dow Jones Industrial Average futures fell 60 points. S&P 500 futures traded 0.2% lower and Nasdaq 100 futures fell 0.3%.
The overnight action came after a steep sell-off on Wall Street where the S&P 500 dropped nearly 3% for its biggest one-day decline in more than a year. Nearly 800 points fell for the blue-chip Dow, and 3.6% of tech-heavy Nasdaq Composite dropped into bear market territory. This is 20% less than its record November high.
Adam Crisafulli of Vital Knowledge stated that the “sensiment” is very negative in a written note. “Any hope/optimism that may have exited seems to have completely evaporated from the market and there’s NO interest to buy dips.”
To start the week, oil prices rose due to U.S. crude hitting a 13-year highAmount of $130 WTI futures ended Monday’s session with a 3.2% increase at $119.40. This is the highest settlement rate since September 2008. The international benchmark, Brent crude, reached a high of $139.13 at one point overnight before settling at $123.21 per barrel, its highest since July 2008.
Investors continue to watch developments in geopolitical tensions. Ukraine said Moscow is seeking to manipulateIts cease-fire agreement allows only Ukrainian civilians to flee to Russia or Belarus.
Antony Blinken Secretary of State said Sunday that USA and allies were considering banning Russian oil and natural gasoline imports to stop its aggression against Ukraine.
Cliff Hodge of Cornerstone Wealth, chief investment officer said that there is no evidence for Ukraine’s improvement and that the rhetoric coming out of DC has gotten more hawkish. The market appears very rational, even though it is impossible to predict the bottom.
Dick’s Sporting Goods will report its quarterly earnings Tuesday morning before the bell.