Dow and S&P indices closed lower after 4 days of gains as Russia bombed Ukraine

The New York Stock Exchange (NYSE) logo is displayed on the floor of the New York Stock Exchange in New York City, US, March 29, 2022. REUTERS/Brendan McDermid

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  • The United States raises concerns about stagnation in the bond market
  • Private payroll increased by 455,000 jobs in March
  • Dow Jones down 0.19%, Standard & Poor’s 500 down 0.63%, Nasdaq down 1.21%

NEW YORK (Reuters) – U.S. stocks fell on Wednesday, with the Dow Jones S&P 500 down in four straight sessions, as signs of progress in peace talks between Ukraine and Russia faltered as Federal Reserve hawks rein in the economy. growth.

Russian forces have bombed the outskirts of Kyiv and a besieged city in northern Ukraine, a day after promising to scale back operations. Read more

The S&P rebounded more than 5% in March after starting the year with two consecutive monthly declines. However, the benchmark index is on track for its first quarterly decline since the first quarter of 2020, when the COVID-19 pandemic in the United States was peaking.

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Stock prices reacted to headlines about negotiations to resolve the Russian invasion of Ukraine. Prices of commodities such as oil and metals have risen since the invasion, exacerbating already high inflation in the United States.

“Ukraine is the dominant narrative in this market, if we’re going to get a settlement and get the potential out of that settlement of lower energy prices, which is really the key, then sort of get back to normal in terms of the world,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, NJ: “The economy is a real positive for the market.”

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“If not, we will continue to go back and forth here as the market tries to digest who the winners and losers are because there are a lot of unintended consequences from this war,” added Meckler.

Dow Jones Industrial Average (.DJI) It fell 65.38 points, or 0.19%, to 35,228.81 Standard & Poor’s 500 (.SPX) It lost 29.15 points, or 0.63%, to 4,602.45 points, and the Nasdaq Composite (nineteenth) It fell 177.36 points, or 1.21%, to 14,442.28.

As inflation increases, speculation is growing that the Federal Reserve may become more aggressive in raising interest rates, which could hamper economic growth.

S&P power indicator (.SPNY) The leading sector was on the positive side with a gain of 1.17%. It’s up nearly 40% this year, which is the strongest quarterly performance on record.

This segment is currently one of only three that have been positive throughout the year and has far outperformed the next closest performing segment in the Utilities segment. (.SPLRCU)which rose nearly 4% over the year but closed at a record high for the fourth consecutive session.

Some investors have taken a defensive stance due to fears of excessive Fed tightening and recent signals in the bond market which often serve as a prelude to a recession. Read more

However, economic data continues to point to the strength of the labor market. The ADP National Employment Report showed that private payrolls rose by 455,000 jobs last month after adding 486,000 jobs in February. Investors will be watching the jobs report on Friday. Read more

Lululemon Athletica Company (LULU.O) It rose 9.58% after forecasting full-year earnings and revenue above estimates, as demand for sportswear remains strong. Read more

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Volume on US stock exchanges was 11.69 billion shares, compared to an average of 13.93 billion for the full session over the last 20 trading days.

Low issues outnumbered advanced issues on the New York Stock Exchange by 1.24 to 1; On the Nasdaq, the ratio was 1.98 to 1 in favor of declining stocks.

The S&P 500 hit 44 new 52-week highs and one new low; The Nasdaq recorded 51 new highs and 47 new lows.

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(Reporting by Chuck Mikolajchak) Editing by Will Dunham and David Gregorio

Our criteria: Thomson Reuters Trust Principles.

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