Wall Street retreats as Ukraine crisis hammers financial stocks

  • Target Corp climbs on strong outlook for 2022
  • Zoom slips on pessimistic annual revenue and profit forecasts
  • Indices down: Dow 0.90%, S&P 0.45%, Nasdaq 0.08%

March 1 (Reuters) – Major Wall Street indexes fell on Tuesday, with financial stocks hardest hit for the second day in a row as the Russia-Ukraine crisis deepened, while a spike in oil prices caused drive up shares of energy companies.

Eight of the 11 major S&P sectors fell in early trading, with financials (.SPSY) falling 2.7% as 10-year US Treasury yields fell to five-week lows amid a run-up. safe haven debt.

Wells Fargo lost 4.5%, while the broader Banks Index (.SPXBK) fell 3.8%. However, the energy sector (.SPNY) outperformed with a 1.1% gain as oil climbed back above $100 a barrel.

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Chevron Corp (CVX.N) climbed 3.2% to a record high after the oil major raised its share buyback program and operating cash flow forecast through 2026. read the continued

A Russian armored column descended on Kiev, the Ukrainian capital, on the sixth day of the assault on its western neighbor. The dispute has drawn sharp retaliation from the West, with stock markets plunging on Monday after several countries announced bold sanctions against Moscow over its invasion of Ukraine. Read more

“Investors don’t like uncertainty and this is a huge level of uncertainty for financial markets. Markets are pricing in a higher risk premium on equities,” said Jeff Schulze, investment strategist at ClearBridge Investments. .

“Given that the US economy is accelerating, the uncertainty will be relatively short-lived and it would not be surprising if the market regains its footing, over the next two weeks, when clarity is restored.”

Data showed U.S. manufacturing activity picked up more than expected in February as COVID-19 infections dwindled, though factory hiring slowed, helping to keep supply chains on lockdown. and high input prices. Read more

As of 10:19 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 303.82 points, or 0.90%, at 33,588.78, the S&P 500 (.SPX) was down 19.78 points, or 0.45%, to 4,354.16, and the Nasdaq Composite (.IXIC) lost 10.39 points, or 0.08%, to 13,741.01.

Target Corp (TGT.N) was a bright spot, as its shares jumped 11.1% after the big-box retailer forecast 2022 sales and earnings to beat analysts’ expectations. Read more

Defense stocks, including Lockheed Martin Corp (LMT.N), rose, building on a strong rally in the previous session. Shares of mega-cap growth names, including Apple Inc (AAPL.O), were mixed.

The CBOE Volatility Index (.VIX), also known as Wall Street’s Fear Gauge, last traded at 31.41 after hitting its highest level since Feb. 24 during the session former.

Zoom Video Communications Inc (ZM.O) fell 2.6% after forecasting lower revenue and profit for the full year, signaling a hit from fierce competition and lower registrations for its platform principal of meetings. Read more

Lucid Group Inc (LCID.O) fell 12.4% after the luxury electric car maker lowered its 2022 production forecast due to “extraordinary supply chain and logistics “. Read more

Falling issues outnumbered advances by a 1.02-to-1 ratio on the NYSE and by a 1.10-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and 8 new lows, while the Nasdaq recorded 29 new highs and 54 new lows.

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Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty

Our standards: The Thomson Reuters Trust Principles.

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