Global markets reeled Monday after the price of crude oil topped $130 a barrel, igniting recession fears. U.S. stock market indexes fell more than 1%.
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The Nasdaq composite quickly lost an opening gain and was down 1.1%. The S&P 500 and Dow Jones Industrial Average fell 1%. But small caps held up better, with the Russell 2000 off less than 0.1%.
Volume rose on the NYSE and Nasdaq compared with the same time on Friday.
The price of U.S. crude oil climbed as high as $130.50 overnight. In morning trading, it eased back down to $118.65, up 2.6% on the day. Energy Select Sector SPDR (XLE) rose 2.3% to a new high.
Oil started surging after U.S. Secretary of State Antony Blinken said Sunday that the U.S. and European allies are discussing a ban on Russian oil imports. It would be another in a series of sanctions in response to Russia’s invasion of Ukraine.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33263.65 | -351.15 | -1.04 |
| S&P 500 | (0S&P5) | 4284.47 | -44.40 | -1.03 |
| Nasdaq | (0NDQC ) | 13169.53 | -143.91 | -1.08 |
| Russell 2000 | (IWM) | 198.61 | -0.05 | -0.03 |
| IBD 50 | (FFTY) | 37.98 | -0.14 | -0.37 |
| Last Update: 10:06 AM ET 3/7/2022 | ||||
But limiting oil supplies is a difficult option, because it raises already high prices of gasoline and other fuels. Sunday’s news showed how much oil prices can react to a potential cutoff of Russian supplies. With other commodities also spiking, fears are growing that inflation could spark a recession.
Major European indexes sold off but bounced in afternoon trading. The London FTSE was up 0.4% after sliding nearly 3%. The Paris CAC 40 rose 0.2%.
The German DAX index was down more than 4% earlier Monday. Its overall decline then exceeded 20%, what is typically considered a bear market. But the index pared losses to 0.3%. The CAC 40 also sank more than 20% from its peak.
Tokyo’s Nikkei 225 hit a 52-week low after it plunged 2.9% Monday. Its two-day rout exceeds 5% and is the largest since May 2021, according to Dow Jones Market Data. The Shanghai Composite tumbled 2.2% and the Hong Kong Hang Seng plummeted 3.9%, its biggest single-day drop since July 27.
Ciena (CIEN) gapped down nearly 6% after the maker of fiber optic network technology earlier today reported January-quarter profit that topped views, but revenue missed expectations. The stock is back to the low of a base it’s been forming for nine weeks.
Among other big movers, DraftKings (DKNG) slid nearly 7% in heavy trading after Argus downgraded the stock to hold from buy. Upwork (UPWK) fell 6% to a November 2020 low after the freelance-work platform said it is suspending all operations in Russia and Belarus by May 1.
In a show of relative strength, Innovator IBD 50 ETF (FFTY) was down just 0.3%.
Tractor Supply (TSCO) jumped past the 226.41 buy point of a double-bottom base in heavy trading. With a relative strength line at new highs, this breakout looks favorable. But the stock market remains in a correction, and many other breakouts have faded.
SolarEdge (SEDG) led with a 6.8% jump. The maker of solar inverter systems is forming a base. Steelmaker Cleveland-Cliffs (CLF) and fertilizer supplier CF Industries (CF) rallied to new highs as commodity stocks remain in favor.
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The post Stock Market Indexes Fall More Than 1% As Oil Surge Fans Recession Fears appeared first on Investor’s Business Daily.
