Nasdaq leads decline on Wall St, with interest rates in focus

Flags are seen outside the New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, US, February 24, 2022. REUTERS / Caitlin Ochs

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  • Financial shares higher
  • Energy shares slip as Brent falls
  • All eyes on Fed policy meeting
  • Indexes: Dow down 0.1%, S&P down 0.7%, Nasdaq off 1.8%

NEW YORK, March 14 (Reuters) – US stocks were lower in afternoon trading Monday, led by a more than 1% drop in the Nasdaq, as investors sold tech and big growth names and put their focus on this week’s Federal Reserve meeting.

Developments in the Ukraine-Russia conflict kept investors cautious as Russian and Ukrainian delegations held a fourth round of talks on Monday, but no new progress was announced, while Russian forces allowed a first convoy of cars to escape Ukraine’s besieged port of Mariupol. read more

Investors expect the Fed to hike interest rates for the first time in three years on Wednesday following its two-day meeting as worries about sharply higher energy and other costs rise.

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“We’re seeing that rotation into value and away from growth, and a lot of that is tied to what’s happening to interest rates,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

“Equity markets are going to be challenged going forward, and today is yet another example of that.”

The technology sector (.SPLRCT) was the biggest drag on the S&P 500, followed by consumer discretionary (.SPLRCD).

Apple Inc (AAPL.O) shares were down more than 2% after its supplier Hon Hai Precision Industry Co Ltd, known as Foxconn, suspended operations in China’s Shenzhen amid rising COVID-19 cases. read more

The Dow Jones Industrial Average (.DJI) fell 43.05 points, or 0.13%, to 32,901.14, the S&P 500 (.SPX) lost 30.22 points, or 0.72%, to 4,174.09 and the Nasdaq Composite (.IXIC) dropped 233.76 points, or 1.82%, to 12,610.05.

The CBOE volatility index (.VIX), also known as Wall Street’s fear gauge, rose.

Energy sector shares (.SPNY) slid, as Brent crude fell below $ 110 a barrel, just a week after it scaled as much as $ 139 due to the Ukraine crisis.

Oil and other commodity prices have shot up during the Ukraine-Russia conflict amid tough Western sanctions against Russia.

Financial (.SPSY) shares gained with a jump in US Treasury yields.

Declining issues outnumbered advancing ones on the NYSE by a 3.26-to-1 ratio; on Nasdaq, a 3.05-to-1 ratio favored decliners.

The S&P 500 posted 11 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 21 new highs and 533 new lows.

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Additional reporting by Devik Jain and Sabahatjahan Contractor in Bengaluru; Editing by Saumyadeb Chakrabarty, Anil D’Silva and Cynthia Osterman

Our Standards: The Thomson Reuters Trust Principles.

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