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Wall Street Opens Lower as Ukraine Crisis Adds to Other Worries; Dow Down 420 Pts

Stock MarketsJan 24, 2022 09:38AM ET
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© Reuters

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened sharply lower again on Monday, as fears of an imminent war in Ukraine added to more familiar worries about rising interest rates and stretched valuations. 

By 9:40 AM ET (1440 GMT), the Dow Jones Industrial Average was down 419 points, or 1.2%, at 33,846 points. The S&P 500 was down 1.5%, and the NASDAQ Composite, which fell over 7.5% last week alone, was down another 1.8%. Like the NASDAQ, the S&P 500 is now down more than 10% from its 2021, a decline that traditionally qualifies as "correction territory."

Over the weekend, the U.S. had instructed the families of its diplomats living in Ukraine to leave the country, seeing a sustained high risk of invasion by Russia, which has massed over 100,000 soldiers on its side of the border with Ukraine since late last year. Russia's Foreign Minister Sergey Lavrov had said at talks with his counterpart Anthony Blinken last week that Russia has no intention of sending troops into Ukraine, but a Kremlin spokesman said on Monday that Russia expected Ukraine's government to attack the two Russian-backed breakaway republics in eastern Ukraine imminently - comments which immediately raised fears that the country would use such an incident to justify invading.

Geopolitical tensions are merely compounding more prosaic fears about the market at the start of a week that will be dominated by the Federal Reserve's meeting, which ends on Wednesday. While the consensus is still for no change to monetary policy until the next meeting in March, the market's reaction is likely to be highly sensitive to any hints in the central bank's guidance that would suggest it feels it is still 'behind the curve' in tackling runaway inflation. 

Once again, the cohort of 'profitless tech' and other innovation-themed stocks was prominent in leading the declines, with Roblox (NYSE:RBLX) stock down 4.6%, Airbnb (NASDAQ:ABNB) stock down 7.8% and Netflix - which  had already lost over one-fifth of its value last week in response to a warning of slower subscriber growth - falling another 6.8%.

Coinbase (NASDAQ:COIN) stock, meanwhile, was down 9.4%, tracking the slump in the value of the cryptocurrencies whose trading it hosts.  Bitcoin tumbled to its lowest in six months before recovering a little to trade down 4.6% at $33,747.

However, the selling also engulfed more profitable, defensive technology stocks, with Alphabet (NASDAQ:GOOGL) Class C (NASDAQ:GOOG) stock down 2.5%, Microsoft (NASDAQ:MSFT) stock down 2.1%, Amazon (NASDAQ:AMZN) stock down 1.6% and Apple (NASDAQ:AAPL) stock down 1.9%.

Tesla (NASDAQ:TSLA) stock, the largest and most liquid holding in many innovation-themed portfolios - including those of Cathie Wood's ARK Innovation ETF (NYSE:ARKK) - fell 8.1% amid signs of forced liquidations. ARK Innovation itself fell another 4.3%, to its lowest in 19 months.

One stock successfully bucking the trend was Kohl's (NYSE:KSS), which rose over 31% after reports that private equity group Sycamore Capital had made an offer for the struggling department store chain. That adds to the growing list of investors that have either expressed an interest in it or have agitated aggressively to improve shareholder returns there.

Wall Street Opens Lower as Ukraine Crisis Adds to Other Worries; Dow Down 420 Pts
 

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Comments (15)
Mark Stallone
Mark Stallone Jan 24, 2022 11:23AM ET
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I'm just glad there's no more mean tweets that hurt my feelings.
compra rapida
compra rapida Jan 24, 2022 11:05AM ET
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Russia is right. NATO is just a US toy that does not benefit Europe at all.
Radvydas Peciokas
Radvydas Peciokas Jan 24, 2022 11:05AM ET
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Russian Bot
Roman Sheveloff
Roman Sheveloff Jan 24, 2022 10:53AM ET
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Wag the Dog. Good movie bad US president. The crisis because Russia moving troops on its own territory. USA has build bases all over the world and next to Russian borders but Russia is the problem. F Joe Biden.
Jack AAA
Jack_A Jan 24, 2022 10:42AM ET
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Come on. This drop has nothing to do with Ukraine!
Mitchel Pioneer
Mitchel Pioneer Jan 24, 2022 10:41AM ET
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Predictable as the sunrise, the 10AM  loss removal breaker fires for the entire world to see.  Fraudulent, criminally manipulated joke.
Matt Novakovich
Matt Novakovich Jan 24, 2022 10:41AM ET
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Stan Smith
Stan Smith Jan 24, 2022 10:27AM ET
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A gold backed digital Ruble...what a great idea
Jeremy Johnson
Jeremy Johnson Jan 24, 2022 10:17AM ET
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The sell-off continues without a peep from the Fed or Biden; because this is exactly what they wanted.
Unoqueva Alguno
Unoqueva Alguno Jan 24, 2022 10:15AM ET
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Did you remember the old good days of "virus fear, vaccine hopes"?
IceIce Baby
IceIceBaby Jan 24, 2022 10:15AM ET
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And the good old US-China trade war.
Leonid Levko
Leonid Levko Jan 24, 2022 10:11AM ET
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Robing people big.
Matt Novakovich
Matt Novakovich Jan 24, 2022 10:11AM ET
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at least they'll have clothes in their new robes
Mauricio V.
Mauricio V. Jan 24, 2022 10:10AM ET
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it's not the war, it's the fed effect because of too much inflation.
Jeremy Johnson
Jeremy Johnson Jan 24, 2022 10:10AM ET
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no, it's COVID policies and vaccine mandates that are causing the majority of the inflation.  The Fed is the scapegoat currently.
Andrew Allen
Andrew Allen Jan 24, 2022 10:10AM ET
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either you don't understand economics Jeremy, or you are joking, I can't tell
 
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