Stocks fell on Thursday as tensions between Russia and Ukraine escalated, with investors fleeing risky assets in favor of bonds. On a point and percentage basis, the Dow Jones Industrial Average had its worst day of the year.
The blue-chip average fell 622.24 points, or 1.8 percent, to 34,312.03, declining steadily throughout the trading day. The S&P 500 fell 2.1 percent to 4.380.26.
The Nasdaq Composite Index dropped 2.9 percent to 13,716.72. Last Friday, stocks plummeted after US National Security Advisor Jake Sullivan warned Russia could invade Ukraine “any day now.” However, stocks recovered earlier this week after tensions appeared to have subsided, with the Russian Ministry of Defense announcing that it was beginning to withdraw troops from the Ukraine border.
Fear returned to the markets on Thursday. President Joe Biden warned on Thursday that Russia’s threat to invade Ukraine is “very high,” telling reporters that an attack could occur within “the next several days.”
According to the US Ambassador to the United Nations, the conflict has reached a “critical juncture,” and Russia is preparing for an “imminent invasion.” Ukraine accused pro-Russian separatists of attacking a border village. On Thursday, the VanEck Russia exchange-traded fund, which tracks shares of Russian companies, fell around 5%.
On Thursday, stocks fell across the board, with technology leading the way lower in the S&P 500.
Consumer staples, which consider defensive stocks because they tend to be stable regardless of the market’s performance, was the best-performing sector, rising nearly 1%.
Following a quarterly report, Walmart led the consumer staples sector that exceeded expectations and reaffirmed guidance. The stock of the big-box retailer increased by 4%.
Investors
In the meantime, market participants are bidding up safe-haven assets. Gold futures gained more than 1%. The benchmark 10-year Treasury yield, which moves inversely to price, fell below 2% as bond prices rose.
Investors also digested a slew of corporate earnings reports.
Not only is the market navigating geopolitical tensions between Russia and Ukraine, but it is also navigating an earnings minefield.
Palantir’s stock dropped 15.8 percent after the company missed profit projections. Despite a better-than-expected earnings report, Nvidia fell 7.5 percent as the chipmaker’s first-quarter gross margin guidance came in slightly lower than analysts expected.
Cisco rose 2.7 percent after exceeding expectations and raising guidance. DoorDash’s stock jumped 10.7 percent after reporting higher-than-expected revenue and order numbers.
