Wall Street is tinged with red

 US stocks fell on Thursday as failed peace talks between Russia and Ukraine spooked investors about the impact of geopolitical conflicts on global growth.

The Dow Jones Industrial Average fell 112.18 points to 33,174.07, after rallying more than 650 points in the previous session. The S&P 500 index fell 0.4 percent to 4,259.52 points. The Nasdaq Composite Technology Index fell 1% to 13,129.96 points due to the decline in the price of two member shares of Apple and Meta Platforms.

Thursday's talks between the foreign ministers of Russia and Ukraine ended with little progress on issues such as an armistice or safe passage for residents trying to leave the besieged city of Mariupol.

Movements in the markets are closely related to the Russia-Ukraine conflict and negatively correlated with energy prices, which have been on a steep climb due to the Russo-Ukrainian war. Since February 24 – the time when Russia invaded Ukraine – the price of WTI crude oil in the US has increased by more than 14%, while in the same period Brent crude oil has increased by about 15%.

However, oil prices have somewhat cooled down in the past 2 sessions. On Wednesday, WTI and Brent crude slid more than 12% and 13% respectively. On Thursday, WTI fell to about $106 a barrel, while Brent fell 1% to nearly $109 a barrel.

Energy stocks like Chevron and Exxon Mobil rose 2.7% and 3.1%, respectively.

Recently, other commodity channels also recorded a spectacular recovery compared to the time when the war began, although temporarily retreated on Wednesday, but quickly increased again on Thursday. Gold and silver also rallied as investors worried about the impact of high prices on economic growth.

Amazon shares jumped 5.4% after the company announced a 1:20 stock split and a $10 billion repurchase of treasury stock. CrowdStrike stock rallied 12.5% ​​after it posted a better-than-expected financial report and raised its profit forecast.

By contrast, the rest of the stocks were in the red, with Zoom Video stock dropping 5.3% and Microsoft down 1%. Apple and Meta Platforms shares fell 2.7% and 1.7%, respectively, and Tesla shares fell 2.4%.

Shares of Goldman Sachs fell 1.1% after announcing it was shutting down its Russia operations, becoming one of the first global investment banking giants to do so after Russia invaded Ukraine last month. JPMorgan made a similar statement on Thursday afternoon. JPMorgan shares fell 1.2%.

The consumer price index (CPI), the main measure of inflation, rose 7.9% in February 2022, a new 40-year high and above the 7.8% forecast from economists surveyed by Dow Jones. Compared to the previous month, CPI increased by 0.8%, also higher than the estimate of 0.7%.

In the bond market, for the first time since February 25, the yield on 10-year US Treasuries rose above 2%.

Investors are also assessing the move to withdraw stimulus measures earlier than forecast by the European Central Bank (ECB). The ECB said it would end its bond-buying program in the third quarter of this year if economic data allows it.

The ECB made the decision before the US Federal Reserve (Fed) is expected to meet next week with a forecast of raising interest rates.

(According to CNBC)

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