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Dow Closes in Correction on Rising Fears of Russia-Ukraine Conflict

Published 02/23/2022, 03:26 PM
Updated 02/23/2022, 04:07 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – The Dow closed in correction territory on Wednesday after reversing intraday gains on signs that Ukraine is preparing for conflict with Russia as tensions continued to escalate. 

The Dow Jones Industrial Average fell 1.4%, or 464 points, taking losses since its recent move above 10% into correction territory.  The S&P 500 fell 1.8% the  Nasdaq fell 2.6%.

Ukraine declared a state of emergency on Wednesday, as intensifying fears that Russia could step up its invasion weighed on sentiment.

Reuters reported that Russia military equipment was on the move toward Eastern Ukraine, marking a blow to hopes of a diplomatic resolution just as Kyiv appears to be preparing for potential conflict. Reports of cyber attacks that took Ukrainian government and bank websites offline also added to tensions.

Ukraine urged its citizens to leave Russia and called up all men of fighting age for compulsory military service.

The U.S. rolled out further sanctions, targeting Nord Stream 2 AG, the company tasked with of building Russia's Nord Stream 2 gas pipeline. The move follows the first tranche of sanctions, announced a day earlier, aimed at restricting Russia’s ability to raise funding from the West.

The Europe Union, meanwhile, is set for an emergency summit on Thursday to discuss next steps following Russia’s move into Ukraine.

The rising tensions continued to underpinned oil prices, boosting energy stocks.

Beyond the geopolitical tensions, a slew of quarterly earnings from consumer discretionary companies including TJX Companies (NYSE:TJX), Lowe’s Companies (NYSE:LOW) and Caesars Entertainment (NASDAQ:CZR) were in focus.

TJX Companies (NYSE:TJX) fell 5% after reporting fourth-quarter results that missed on top and bottom lines as a pandemic-induced rise in costs and supply chain disruptions weighed on growth.

Lowe’s, meanwhile, pared some gains but was up about 1% after it delivered better-than-expected guidance as strong demand for home-improvement tools and building materials bolstered fourth-quarter results.

Caesars Entertainment reported a narrower quarterly loss, supported by surge in revenue as demand rebounded following the easing of pandemic restrictions. Its shares rose more than 3%. 

Big tech gave up early-day gains with Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) leading to the downside.

Chip stocks also gave up its intraday gains pressured by Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), but Intel (NASDAQ:INTC) was relative out performer. 

Intel gave up gains to close flat after Raymond James upgraded the stock to market perform from underperform, citing limited downside potential.

The “prevailing bull case on Intel now is that it will finally make some incremental progress on its roadmap, which will arrest and reverse AMD’s share gains,” Raymond James Analyst Christopher Caso said.

The S&P 500's trend lower into correction territory has pushed it into oversold territory, and to levels that could trigger support.

“The trading chart above shows the S&P 500 closing in on 4200 support once again- but in doing so, is pressing into oversold territory,” Janney Montgomery Scott said in a note. “This implies we are likely to see another rally as the index approaches the 4200 range in sessions ahead.”

Latest comments

The headline could say 'Rising Fears of Inflation' instead but that would put the blame on the FED and Sleep Joe! More distractions coming
troll
William smith ...another true believer in Putin's fascism for him slavery means freedom.......putin following the 3 Riech playbook for invasion and conquest...
it's funny reading these message boards with all the Trumpian lunatics and their bizarre comments
the Russian butcher has sent his barbarian armories to destroy the democratic Ukrainian people...it's time to "neutralize" the psychopath dictator Putin, and the criminals that support him.
You sound like you're talking about the current US administration.
troll... Russian barbarism and butchery is world renowned ....
kiev was long civilized when Moscow was still a backwater village filled with ignorant superstitious peasents.... Ukraine should be dominating backwater Russia and Teaching them how to be civilized nation. i
it's funny all the people that were saying that Putin will NEVER invade and that the US government were just war mongering.....guess not eh?
um they recognized Ukranian territory as their own and went in. what is that called?
 Shh he thinks CNN is news!
cant argue with u crazies lol. I could imagine where you get your news from, Tucker and Alex Jones? 🤣🤣🤣
oh no more news for hedgies keep shorting the market and spread fear so people sell
The deliberate destruction of the West is taking place. First Corona virus. World War II Russia is attacking China is attacking Taiwan this World War 3 alarming the West !!
Spoken like someone with Stockholm Syndrom
syndrome
read a dictionary
European stocks weren't decimated today. Y us ? It has more to do than the Ukrainian problem. Maybe the downgrading of the USA debt standing? Or the 12% wholesale. Inflation.  And the rise in unemployment.? God S O S.
this ********proooves that dolllar is fake currency and just us trap
Gold is the only safe haven right now..
Elections have consequences, stolen elections have catastrophic consequences!
loser
 The video proof/documentary on how the US Democrat party cheated & lied in the 2020 election comes out in March.  It is here:   https://2000mules.com/
thats facts? 😂education has failed all of you
If this keeps up there will be no economy to save
make banksters jump again
We have given back almost all of last years gain good lord
Last years gain was an inflated pump lol, markets need to go back to 2019 levels
You mean us poor folks that didn't get on the GME Pump and are taking Ls for those who made out. Yup. Those poor folks got lucky..
Why would you want it to go back to 2019 levels when most of SP500 companies are now bigger and more profitable. Going back to 2019 makes no sense
imagine the economy crash, and the inflation is sky rocketing.... from the looks of it it is coming....it would be horrible, not Russia, nor Ukraine, but our streets....
people need wake up ... this was all part of plan... GOP aka right wing powers (globally) backs Putin ! crush the western economics and financial system then blaming it on democrats then right wing comes in making look like they fix the problem when they was the cause of the problem... but hey americans dont like facts that Trump was having his puppet Powell pushing trillions into stock market corporations and banks long before Biden... but ya its them *****liberals caused inflation... no greed of corporatism ...predatory capitalism!
🐑
just like the plan of the fascist right wing is have total control and tyranny for the 1%... good luck in the new world order slave
The market might bottom when Biden's approval ratings bottom ....... so Im afraid there is a looooooonnnggg way to go.
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