NEW YORK, March 23 (Reuters) – All three main U.S. inventory indexes ended greater than 1% decrease on Wednesday as oil costs jumped and Western leaders started gathering in Brussels to plan extra measures to stress Russia to halt its battle in Ukraine.
Responding to Western sanctions which have hit Russia’s financial system onerous, President Vladimir Putin mentioned Moscow will search fee in roubles for pure gasoline gross sales from “unfriendly” international locations, whereas its forces bombed areas of the Ukrainian capital Kyiv a month into their assault. learn extra
Oil costs rallied 5% to over $121 a barrel and pure gasoline futures additionally jumped.
Whereas greater oil costs profit power shares, they’re a damaging for shoppers and lots of companies. The S&P 500 power sector (.SPNY) rose 1.7% and utilities (.SPLRCU) gained 0.2%, whereas the entire different main S&P 500 sectors have been decrease on the day.
“These geopolitical issues are type of hanging over the market,” mentioned Stephen Massocca, senior vice chairman at Wedbush Securities in San Francisco.
“The resurgence of oil costs is giving individuals pause,” he mentioned, including, “There must be a decision with Russia. That is going to carry the market again.”
The day’s decline follows a current string of good points because the market recovered from lows hit amid the battle and elevated worries about inflation and better rates of interest.
Among the many day’s greatest drags, Adobe Inc’s (ADBE.O) inventory slid 9.3% after the Photoshop maker late Tuesday forecast downbeat second-quarter income and revenue and sees an affect on fiscal 2022 income as a result of Russia-Ukraine disaster.
The Dow Jones Industrial Common (.DJI) fell 448.96 factors, or 1.29%, to 34,358.5, the S&P 500 (.SPX) misplaced 55.37 factors, or 1.23%, to 4,456.24 and the Nasdaq Composite (.IXIC) dropped 186.21 factors, or 1.32%, to 13,922.60.
Traders continued to evaluate the outlook for U.S. rates of interest. San Francisco Federal Reserve Financial institution President Mary Daly mentioned on Wednesday she is open to elevating charges by 50 foundation factors in Could, becoming a member of different policymakers in saying so. learn extra
Final week, the U.S. central financial institution raised rates of interest for the primary time since 2018.
Alphabet-owned (GOOGL.O) Google mentioned it is going to pause all advertisements containing content material that exploits, dismisses or condones the continued Russia-Ukraine battle. Its inventory fell 1.1%.
GameStop Corp (GME.N) shares jumped 14.5% after Chairman Ryan Cohen’s funding firm purchased 100,000 shares of the videogame retailer. learn extra
Declining points outnumbered advancing ones on the NYSE by a 1.78-to-1 ratio; on Nasdaq, a 1.81-to-1 ratio favored decliners.
The S&P 500 posted 22 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 43 new highs and 60 new lows.
Quantity on U.S. exchanges was 11.69 billion shares, in contrast with the 14.62 billion common for the complete session over the past 20 buying and selling days.
Extra reporting by Devik Jain and Amruta Khandekar in Bengaluru; Enhancing by Marguerita Choy
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