U.S. stocks and global equity indexes fell as investor concerns mounted about Russia’s intensifying military campaign in Ukraine.
The Dow Jones Industrial Average dropped 521 points, or 1.5%, in morning trading. The S&P 500 fell 1.8% and the Nasdaq Composite declined 2.2%. Nine of the S&P 500’s 11 sectors were in the red, with only energy and utility companies rising.
A strong jobs number early Friday wasn’t enough to push major indexes higher. Many investors remained focused on Russia’s escalating military campaign and trying to assess how much tough Western sanctions on Russia will damage economic growth. The invasion and rising commodity prices could further stoke inflation at a time when prices have already been at a 40-year high.
New data on Friday showed that the U.S. added 678,000 jobs in February, more than the 440,000 expected by economists surveyed by The Wall Street Journal. The Federal Reserve has signaled that it is on track for a quarter-percentage-point interest-rate increase at its March meeting, removing some near-term uncertainty about interest rates.
“The jobs report was strong,” said
Amy Kong,
chief investment officer at Barrett Asset Management. But “it doesn’t necessarily change the Fed stance,” she said.
In bond markets, the yield on the benchmark 10-year U.S. Treasury note declined to 1.710%, down from 1.843% Thursday. Bond yields have swung wildly throughout the week as investors have monitored the Russian invasion, comments from Federal Reserve Chairman
Jerome Powell
and economic data.
Bitcoin prices slipped to around $40,700 in recent trading.
Rising oil prices and the prospect of slower economic growth have also pushed investors into traditionally safer investments such as government bonds. Bond yields decline as prices rise. The pan-continental Stoxx Europe 600 index fell 2.8% to trade close to its lowest level in nearly a year, reflecting concerns that Europe will bear the brunt of the economic fallout from the Russia-Ukraine crisis.
“The U.S. is less vulnerable to the Russia-Ukraine crisis than what you would see in Europe,” said
Seema Shah,
chief strategist at Principal Global Investors. For now, she said, “The market is looking at [the situation] and saying the U.S. economy is strong.”
European bank stocks were hit particularly hard Friday.
lost around 9.5% after the French lender said Thursday that its exposure to Russia stood at 18.6 billion euros, equivalent to over $20 billion, at the end of 2021. Shares of Italian bank
tumbled around 13.6%. Meanwhile,
a major German energy company that is owed about 950 million euros by the Russia-owned company…
Read More: U.S. Stocks Fall After Russia Shells Ukrainian Nuclear Plant