Global Stocks lower as tensions rise over Ukraine. The market dropped after US President Joe Biden accused Russia of looking for excuses for an invasion.
Amidst the tension between Washington and Moscow, the stocks have taken a low drop. As suspected, all fingers point to the statement of the US president. On Thursday, Joe Biden said that military action could begin imminently.
Fall of Global Stocks
The incident led all stocks to lower in different countries and states. On Friday, the Hang Seng in Hong Kong, Asia dropped by 1.8%. While in Japan’s Nikkei, it dropped by 0.4%. Following that, the S&P 500 fell by more than 2%, Dow Jones fell by 1.8% and the Nasdaq closed nearly 3% down in New York.
These drops surfaced as President Biden blamed Russia for looking for excuses for invasion, the days for which are nearly approaching. In response to this, Russia declined the accusation, calling them “baseless” and moreover blamed US for stoking tensions.
Michael James, managing director of equity trading at Wedbush Securities said, “There’s a lot of nervousness out there and as we approach the weekend nothing’s been settled between Russia and Ukraine.” Further, he added, “The continued weakness, especially in the growth names, is indicative of elevated nervousness and sellers continuing to swamp buyers in just about every stock.”
The US Accuses Russia of Excuses to Invade Ukraine
The situation remains uncertain due to the traded fire from Ukrainian forces and Russian-backed separatists in eastern Ukraine. This led to investor worries and prompted the sell-off to speed up in late afternoon trade.
Most technology and communication firms led the declines, which affected most sectors. From S&P 500 to Dow, it affected them all, and oil futures fell down by 2%. Dow took the most daily percentage fall since November 30.
According to the White House, discussions were held by US officials with Saudi Arabia about a “collaborative approach” to manage potential market pressures. These could stem from a possible Russian invasion of Ukraine.
Walmart lifted the consumer staples sector with few exempts. As the concerns of the rising cost of living increased, the executives expected more shoppers to turn to it. Because it was reported strong holiday sales which resulted in rising of a discount giant by 4%. However, with the gold rising to an eight-month high, it was considered a less risky gain, along with some other assets.
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