Global stock market indexes fell sharply Friday after Russian artillery struck a nuclear power plant in Ukraine, overshadowing a strong U.S. jobs report.
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The Nasdaq composite, S&P 500 and Dow Jones Industrial Average tumbled 1.4%. Volume rose on the NYSE and Nasdaq compared with the same time on Thursday.
Overnight, Russian forces shelled Europe’s largest nuclear power plant as military attacks continued in Ukraine.
The fire — which affected the Zaporizhzhia power plant’s training facility next to its nuclear reactors — was put out Friday morning. None of the six reactors were affected by the fire, and there was no radiation leak detected, The Wall Street Journal reported.
Yet, the attack caused worries of a massive environmental disaster, and showed that Russian attacks are becoming more indiscriminate.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33323.31 | -471.35 | -1.39 |
| S&P 500 | (0S&P5) | 4304.04 | -59.45 | -1.36 |
| Nasdaq | (0NDQC ) | 13349.00 | -188.94 | -1.40 |
| Russell 2000 | (IWM) | 198.90 | -2.92 | -1.45 |
| IBD 50 | (FFTY) | 37.82 | -0.41 | -1.07 |
| Last Update: 10:14 AM ET 3/4/2022 | ||||
In Asia, the Tokyo Nikkei tumbled 2.2%, the Shanghai composite fell 1% and the Hong Kong Hang Seng Index slid 2.5%. European indexes plunged in afternoon trading, with the London FTSE off 2.9%, the German DAX down 3.3% and the Paris CAC 40 losing 3.5%.
Commodity prices have been soaring because Russia — and to a smaller extent Ukraine — is a major producer of oil, natural gas, wheat and other commodities.
The price of U.S. crude oil jumped nearly 4% to $111.92. The Energy Select Sector SPDR ETF (XLE) rose 0.6%, and is the only S&P sector ETF higher on the day.
Teucrium Wheat Fund (WEAT), an ETF that tracks wheat futures, gapped up 8.5% this morning and has skyrocketed 48% this week. And Teucrium Corn Fund (CORN) rose 5.7% to make its weekly gain nearly 16%.
Jobs Report Doesn’t Help Stock Market
A strong U.S. jobs report was no comfort for investors.
U.S. employers added 678,000 jobs in February, as the fading omicron wave revived the service sector. The unemployment rate fell to 3.8%. Economists had forecast 390,000 new jobs and a 3.9% unemployment rate. Job gains for December and January were revised upward by 92,000.
Charlie Ripley, senior investment strategist for Allianz Investment Management, said in a commentary that the report shows employers were able to attract workers back into the labor force.
“Looking into the details, job additions were broad based and payrolls in pandemic-affected sectors rebounded as expected. Wages were flat for the month, but still remain elevated on an annual basis at 5.1%,” Ripley said. “No matter how you slice the report, the results look very strong from all angles. From the Fed’s standpoint, today’s report crystallizes the need for the Fed to begin the rate hiking campaign with policy rates.”
Financials were the weakest S&P sector, with Financial Select Sector SPDR (XLF) down 2.2%. The yield on the 10-year Treasury note slid 11 basis points to 1.73%.
IBD 50 Falls With Stock Market
Gap (GPS) sprang up at the open, but reversed lower, after the apparel retailer beat profit expectations and gave a positive outlook. JPMorgan Chase raised its price target on Gap to 20 from 17, but Credit Suisse cut it to 16 from 20.
The Innovator IBD 50 ETF (FFTY) slid 1.2%. Commodity stocks including CF Industries (CF), Cleveland-Cliffs (CLF) and Franco-Nevada (FNV) rose more than 2%.
Costco (COST) fell more than 3% after the membership store beat sales and profit expectations late Thursday. Sales rose 16% to $50.94 billion. Adjusted earnings climbed 15% to $2.92 a share, excluding premium Covid-related wages in the year-ago period. Adjusted same-store sales jumped 11.1%.
Alpha & Omega Semiconductor (AOSL) slid below its 50-day moving average, though it continues to form a base.
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