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US markets settle deeply in red as Russia ramps up attacks on Ukraine

02 Mar 2022 Evaluate

The US markets ended deeply in red on Tuesday on rising concerns about growth due to the ongoing Russia-Ukraine war and a raft of sanctions imposed on Russia by the US and Western allies. According to private reports, Russian rockets have hit the center of the Ukrainian city of Kharkiv, and a long line of tanks was heading toward Kyiv. The first round of talks between Russia and Ukrain ended without a breakthrough. Ukrainian President Volodymyr Zelensky said that the second round of talks aimed at ending Russia's attack on Ukraine will take place soon. Further, Crude oil's steep rise has raised concerns about inflation, adding to the woes.  Meanwhile, financial stocks tumbled, weighed down by concerns the sanctions imposed on Russia might significantly hurt the sector.

American Express plunged 8.5 percent, while JP Morgan and Goldman Sachs both shed about 3.7 percent. Wells Fargo and Bank of America shares too closed sharply lower. On the economic data front, the IHS Markit US Manufacturing PMI was revised lower to 57.3 in February of 2022, from a preliminary estimate of 57.5 but above the previous month's final reading of 55.5. According to a report from the Institute for Supply Management, the ISM Manufacturing PMI for the US rose for a second straight month to 58.6 in February of 2022 from 57.6 in January and compared to market forecasts of 58. This latest reading showed that the overall economy expanded for the 21st consecutive month.

Dow Jones Industrial Average fell 597.65 points or 1.76 percent to 33,294.95, Nasdaq declined 218.94 points or 1.59 percent to 13,532.46 and S&P 500 was down by 67.68 points or 1.55 percent to 4,306.26.

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