Financial stocks pound Wall Street as Ukraine crisis deepens

  • Target Corp climbs on strong outlook for 2022
  • Zoom slips on pessimistic annual revenue and profit forecasts
  • Indices down: Dow 2.05%, S&P 1.67%, Nasdaq 1.50%

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

Ten of the 11 major S&P sectors fell, with financials (.SPSY) falling 3.8% and posting their biggest daily percentage decline since June 2020.

Wells Fargo lost 5.1%, while the broader banks index (.SPXBK) fell 4.9% as 10-year US Treasury yields fell to five-week lows in the middle of the month. flight to safe haven debt.

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However, the energy sector (.SPNY) outperformed with a 0.4% gain as oil climbed back above $100 a barrel.

Chevron Corp (CVX.N) climbed 2.7% to a record high after the oil major also raised its share buyback program and operating cash flow forecast through 2026. read the following

Russia rained down rockets on Kharkiv and warned Kiev residents to flee their homes as a Russian armored column charged into the Ukrainian capital on the sixth day of the assault on its western neighbour. Read more

The dispute has prompted sharp retaliation from the West, including blocking some Russian lenders’ access to the SWIFT international payment system.

“The longer this conflict lasts, the worse the fighting is going to get, and that can’t be good for stocks,” said David Petrosinelli, senior trader at InspereX in New York.

“Equities are very vulnerable even from the levels they are at now and a lot of that is because of what is happening in Ukraine and to a lesser extent the disruptions that are going to happen with oil.”

As of 12:03 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 693.60 points, or 2.05%, at 33,199.00, the S&P 500 (.SPX) was down 73.19 points, or 1.67%, at 4,300.75, and the Nasdaq Composite (.IXIC) was down 206.35 points, or 1.50%, at 13,545.05.

On a positive note, data showed U.S. manufacturing activity picked up more than expected in February as COVID-19 infections waned, while construction spending surged in January. Read more

“Given that the US economy is picking up momentum, 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,” said Jeff Schulze, investment strategist at ClearBridge Investments.

Target Corp (TGT.N) jumped 11.2% after the big-box retailer forecast 2022 sales and earnings to beat analysts’ expectations. Read more

Defense stocks such as 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), fell more than 1% each.

The CBOE Volatility Index (.VIX), also known as Wall Street’s fear gauge, last traded at 33.93, its highest level since Feb. 24.

Zoom Video Communications Inc (ZM.O) fell 5.6% 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

Falling issues outnumbered advances by a 1.64-to-1 ratio on the NYSE and by a 1.91-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and 14 new lows, while the Nasdaq recorded 32 new highs and 101 new lows.

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Reporting by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila

Our standards: The Thomson Reuters Trust Principles.

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