4.02pm: Markets end negative ahead of long weekend
US stocks extended losses, ending the week in the red as Ukraine-Russia tensions overshadowed the performance of the equities, while investors continued to assess Fed’s upcoming decision on interest rate hikes amid geopolitical uncertainty.
The tech-laden Nasdaq Composite incurred the most losses of the three major indices, closing 1.3% lower at 13,542, while the Dow Jones Industrial Average shed 0.6%, or 226 points, at 34,086, and the S&P 500 lost 0.7% at 4,348.
The S&P 500 has lost 9% in 2022, while the Nasdaq is down by 14%.
On the corporate front, Intel was one of the worst stocks on the Dow Friday, shedding more than 5%.
The three indexes were all down by 1% for the week.
12.10pm: Markets on track for losing week
US stocks continued to decline Friday as tensions between Ukraine and Russia added to the volatility of equities, while investors nervously await a decision on US interest rate hikes amid the geopolitical uncertainty.
Around noon, the Dow Jones Industrial Average had shed 0.3% or 123 points at 34,188, while the S&P 500 index and the Nasdaq Composite lost 0.5% and 1%, respectively.
“US markets took their cues from today’s uncertainty in European markets, opening mixed ahead of the long weekend, with the US off for President’s Day on Monday,” noted Michael Hewson chief market analyst at CMC Markets UK.
The Wall Street Journal reported that the Ukraine-Russia crisis could prolong already-high inflation in developed countries as the supply chain further gets disrupted.
Fresh data on US home sales revealed that sales of existing-home sales climbed to 6.7% in January, compared to the previous month at 4.6%.
On the corporate front, DraftKings shares plunged by over 18% Friday after the early-morning release of its fourth-quarter financial results.
“Revenues came in at $473 million, with the company boosting its 2022 revenue forecasts to $1.85 billion to $2 billion,” said Hewson. “The profit guidance was also disappointing, with the company warning that losses would be higher than expected, between $825 million to $925 million.”
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10.00am: Equities weak amid geopolitical tensions
US stocks were mixed early on Friday after heavy losses incurred in the previous session as threats of Russian invasion in Ukraine continued to escalate, while investors treaded carefully ahead of Federal Reserve policy changes expected next month.
In New York, the Dow Jones Industrial Average was up by 0.1% or 46 points, at 34,358, and the broader S&P 500 gained 0.2%, while the tech-laden Nasdaq Composite lost 0.1%.
Major US indices are on track to record the second week of losses in a row, with the Dow losing 1.2%, while the Nasdaq Composite and S&P 500 have shed 0.5% and 0.9% this week, respectively.
6:30am: Markets expected to rally modestly
US stocks are expected to rally modestly at the open on Friday a day after the Dow Jones Industrial Average suffered its steepest one-day loss of 2022 as investors track the escalating violence in Ukraine and worries over a Russian invasion of the country.
Futures for the blue-chip Dow Jones rose 0.4% after dropping more than 600 points, or 1.8% on Thursday. Contracts for the broader S&P 500 also gained 0.4% and those for the tech-focused Nasdaq-100 added 0.5%.
After a turbulent week for markets, all three major stock indexes were on track to notch weekly losses as of Thursday’s close.
Investors have struggled with mixed messages on the potential for escalation between Russia and Ukraine. US Secretary of State Antony Blinken warned Thursday of a looming Russian offensive against Ukraine and proposed a last-ditch diplomatic meeting with his Russian counterpart.
Craig Erlam, senior market analyst, UK & EMEA, at OANDA commented: "It promises to be a fascinating end to the week as European equity markets steady and US futures pare losses amid planned talks between the US and Russia next week.
"Risk aversion swept through the markets on Thursday as the perceived risk of a Russian invasion of Ukraine rose. Much like the weather here in London, Friday was shaping up to be rather treacherous in the markets, that is until US Secretary of State Antony Blinken accepted an invitation to meet Russian Foreign Minister Sergei Lavrov in Europe next week."
Erlam added: "While we're still being warned that a Russian invasion is highly likely, the meeting does offer hope that nothing will happen before then which is bringing some stability in the markets. In the absence of the meeting, it could have been another turbulent day in the markets and we could still see some risk aversion creeping in as we near the close, given how quickly these situations can change."
Concerns over spiraling inflation and Federal Reserve monetary policy have also kept investors cautious. Minutes from the last FOMC meeting published this week indicated that a US interest rate rise is likely as early as next month.
US home sales data for January is due out at 10.00 am ET and economists expect it will show a slight drop from December.
On the corporate front, in premarket trading, Shake Shack (NYSE:SHAK) shares fell after the burger chain guided for weaker-than-expected revenue this quarter. Roku shares also dropped after it said supply-chain disruptions continued to affect its growth and TV sales. Earnings are due ahead of the market open from Deere.