Wall Street collapses due to Ukrainian tensions, Boeing crashes

Russia’s foreign ministry said it had summoned US ambassador John Sullivan to explain that remarks by President Joe Biden about his Russian counterpart Vladimir Putin had pushed bilateral ties to the brink of collapse.

Technology and consumer discretionary stocks were among the biggest losers after a solid rally last week. Megacap growth names Alphabet Inc., Amazon.com, Microsoft Corp and Meta Platforms were down between 0.7 and 3.5%.

Boeing’s 5.7% slide weighed the most on the blue-chip Dow after a China Eastern Airlines jet with 132 passengers crashed in the mountains of southern China.

US-listed shares of China Eastern Airlines fell about 8.2%. Parts suppliers Spirit Aerosystems Holdings Inc. and Hexcel Corp. were down 5.6% and 1.1%, respectively. Engine maker General Electric Co also slid 0.9%.

Thomas said, “The key is going to be the flight recorder, the black box, and then from there to determine what happened, but until then it’s shot first, ask questions later, and right now Boeing’s stock is taking it to the chin.” has been,” said Thomas. Hayes, president of Great Hill Capital in New York.

Meanwhile, energy stocks rose nearly 7% in oil prices as Brent crude climbed more than $114 a barrel as EU countries consider joining the United States in a Russian oil embargo.

Rising commodity prices have heightened concerns about high inflation, prompting the Federal Reserve to aggressively raise interest rates.

“Just keep your eye on the oil and [Fed Chair] Powell, they’re going to be the key to the market today,” Hayes said.

Fed Chair Jerome Powell is due to speak at the National Association for Business Economics conference at 1200 ET (1600 GMT), while other policymakers were prepared to speak through the week after the US central bank charted a hawkish rate hike path .

At 10:14 am, the Dow Jones Industrial Average was down 170.38 points, or 0.49%, at 34,584.55, the S&P 500 was down 13.53 points, or 0.30%, at 4,449.59 and the Nasdaq Composite was down 133.35 points, or 0.96. %, at 13,760.49.

Global stocks started the week lower as fighting broke out in Ukraine and the Kremlin said peace talks had not yet achieved any major breakthrough.

Expectations of a peace deal with the Fed’s widely expected interest rate hike bolstered market sentiment last week, with Wall Street’s three main indexes posting their biggest weekly percentage gains since the start of November 2020. Were.

Among individual stocks, Allegheny Corp rose 24.7% when Warren Buffett’s Berkshire Hathaway Inc. struck an $11.6 billion deal to buy the owner of reinsurer Transray. Shares of Berkshire rose 2.3%.

Nielsen Holdings fell 7.2% as it rejected an unsolicited bid from a private equity consortium that was valued at $9.13 billion.

The number of decline issues was high, thanks to a 1.18-to-1 ratio on the NYSE and a 1.59-to-1 ratio on the Nasdaq.

The S&P index recorded 35 new 52-week highs and no new lows, while the Nasdaq recorded 31 new highs and 22 new lows.

This story has been published without modification in text from a wire agency feed.