4.02pm: Stocks waver amid political uncertainties
US benchmarks ended with a sharp fall Thursday as uncertainty over the Russia-Ukraine standoff continued to loom over the market.
The Dow Jones Industrial Average slumped by more than 600 points, or 1.8% at 34,312, while the Nasdaq Composite suffered from heavy losses of 2.9% at 13,716 and the S&P 500 losing 2.1%, closing at 4,380.
For the week, all three major indices are in the red.
12.10pm: Equities waver amid geopolitical tensions
US stocks continued to plunge on Thursday amid Russia-Ukraine tensions, while investors nervously weighed Federal Reserve minutes to gauge the potential interest rate hike expected as early as in March.
At noon, the Dow Jones Industrial Average dropped sharply, losing 400 points or 1.1% at 34,533, while the broader S&P 500 and the tech-heavy Nasdaq Composite shed 1.2% and 1.6%, respectively.
“Financial markets took a turn for the worse after warnings from the US administration that there is evidence on the ground that Russia is moving towards an imminent invasion of Ukraine,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
She added: “Reports of firing in a border region and accusations that Moscow is orchestrating a false flag operation, an intent to pin the blame for starting conflict on Ukrainian forces, has ratcheted up tensions and led to more investors seeking less risky positions.”
On the corporate front, investors were met by a series of earnings reports from companies including Nvidia, Walmart, DoorDash, and Cisco.
Nvidia shares plunged by 8% despite positive results after-hours Wednesday from the chipmaker. Walmart reported better-than-expected earnings on Thursday, sending its shares up by more than 1%.
Meanwhile, unexpectedly high weekly US jobless claims at 248,000, up from last week’s 218,000, further soured market sentiment.
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9.44am: US stocks start firmly lower on Thursday
US shares joined global markets to start lower in New York on Thursday as traders don't really know which way to turn amid geopolitical tensions and rising inflation.
The Dow Jones Industrial Average plunged 262 points at 34,672, while the broader based S&P 500 lost around 34 to stand at 4,440. The technology laden Nasdaq index dropped 115 points at 14,008.
Confusion continues to reign at the Ukraine- Russia border over an invasion as there are simultaneous reports of Russian troops withdrawing and amassing.
"Clearly, tensions are going to remain until we see a confirmed and substantial reduction of troops at the border but rather than abandon risk as they did late last week and early this, investors seem comfortable sitting on the fence. Of course, that could change if we see any escalation or as we head into the weekend if we have no further clarity," said Craig Erlam, market analyst at Forex firm Oanda.
Meanwhile, the issue of inflation remains to the fore against the backdrop of Central bank tightening of policy.
"The pandemic has delivered widespread price pressures that have lasted longer and far exceeded expectations. Central banks have been forced into action while markets continue to price in more and more hikes this year," said Erlam.
"The Fed minutes on Wednesday offered little new information on that front and anything in them that came across as potentially less hawkish is probably out of date by now," he added.
6.30am: US stocks seen opening down
US stocks are expected to open lower as conflicting reports emerge on the situation on the Russia-Ukraine border, with US officials dismissing earlier reports from Russia’s Defence Ministry that it had begun pulling back some of its troops after training exercises near the border.
Futures for the Dow Jones Industrial Average declined 0.46% in Thursday pre-market trading, while those for the broader S&P 500 index fell 0.54% and the tech-heavy Nasdaq shed 0.7%.
Stocks recovered some of their losses in late Wednesday afternoon trading after minutes from the Federal Reserve’s January meeting did not point at any hastened moves for interest rate hikes - but affirmed to investors that the central bank will raise interest rates as early as next month. Earlier, a White House official said Russia's claim that it is moving troops away from the Ukraine border was false, saying thousands of additional troops have arrived in recent days.
At the close, the Dow was just 0.16% lower at 34,934, with the Nasdaq down 0.11% at 14,124, while the S&P 500 closed with a 4 point gain to 4,475.
“(The) good mood didn’t last long as the US didn’t let the tensions de-escalate insisting that Russia is certainly not pulling back its troops but is rather increasing its presence at the Ukrainian border,” commented Ipek Ozkardeskaya, senior analyst at Swissquote.
“The US warning hit the investor appetite at yesterday’s session and reversed the earlier week gains in stock indices. As a result, the safe-haven flows boosted gold, again. The price of an ounce is back above the $1,875 mark, as crude oil is steady around $92 per barrel."