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US markets end lower as traders try to assess impact of Russia-Ukraine war

09 Mar 2022 Evaluate

The US markets ended lower on Tuesday as investors continue to assess geopolitical tensions between Russia and Ukraine and high commodity prices. Cautiousness also prevailed in the markets as crude oil prices continued to skyrocket as President Joe Biden officially announced a US ban on the import of Russian oil, liquefied natural gas, and coal in response to Russia's unprovoked invasion of Ukraine. Biden acknowledged many European countries would not be able to join the US in the ban but said his administration would work with their partners to reduce their dependence on Russian energy. Earlier in the day, the European Union's executive arm the European Commission had pledged to reduce Russian gas imports by two-thirds by the end of this year.

On the sectoral front, Steel stocks showed a substantial move to the downside amid worries about global economic growth, with the NYSE Arca Steel Index plunging by 2.8 percent. Significant weakness was also visible among healthcare stocks, as reflected by the 2 percent slump by the Dow Jones US Health Care Index. Utilities, tobacco and natural gas stocks also moved to the downside on the day. The Dow Jones Utility Average gave back ground after ending the previous session at a record closing high. However, airline stocks moved sharply higher over the course of the session, with the NYSE Arca Airline Index soaring by 5.6 percent after ending the previous session at its lowest closing level in over a year.

Dow Jones Industrial Average fell 184.74 points or 0.56 percent to 32,632.64, Nasdaq dropped 35.41 points or 0.28 percent to 12,795.55 and S&P 500 was down by 30.39 points or 0.72 percent to 4,170.7.

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