4.02pm: Dow drops 180 points
US stocks decline at the closing after a volatile day as fears of recession and rising inflation pushed the Dow Jones Industrial Average into the correction territory, while the US banned all Russian oil and gas imports Tuesday.
At closing, the Dow slipped 0.6% or 186 points at 32,632, while the tech-laden Nasdaq Composite was down by 0.3% at 12,796, and the S&P 500 lost 0.7% at 4,171.
Shares of airlines and travel lines jumped Tuesday. Delta Air Lines (NYSE:DAL) was up by 3.7%, while American Airlines gained 5.2%.
12.05 pm: Nasdaq falls further into bear market territory
US stocks edged lower in noon trading on economic growth concerns over the Russia-Ukraine conflict, as the oil price continues to climb with US plans to ban Russian crude imports.
At midday, the Dow fell 25 points to 32,792, while the S&P 500 eased 16 points at 4,186 and the tech-heavy Nasdaq lost 69 points to 12,762.
“The Russia/Ukraine conflict, commodity price spikes, inflation concerns, and a very uncertain Fed outlook have caused recession fears to rapidly intensify and equity markets to sell off sharply,” Wolfe Research chief investment strategist Chris Senyek said.
Notable movers included shares of Chevron Corporation, which jumped more than 6% as the WTI oil price rose more than 7%.
11.15am: Proactive North America headlines:
Evergold says it is getting closer to drill program at its past-producing Rockland property in Nevada
Bango set to see continued strong growth, Berenberg believes
Kontrol Technologies says its BioCloud technology identifies influenza virus during testing in Japan
Todos Medical names Greg Meiselbach as its new vice president of government affairs
The Valens Company (TSX:VLNS, OTCQX:VLNCF) says Green Roads subsidiary launches arthritis pain product; becomes official Arthritis Foundation sponsor
Potent Ventures establishes partnership with leading shark conservation group OCEARCH in preparation for launch of The Gummy Project
Bango to sell artwork used on its annual report as an NFT to raise funds for Ukrainian refugees
NEO Battery announces completion of construction, design, and permit contract for its silicon anode commercial plant in South Korea
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) inks exclusive 18 month contract with university nursing school in Portland, Oregon
CO2 GRO reports commissioning of a technology trial at a large EU grower’s R&D greenhouse facility
Tartisan Nickel assays high-grade nickel at its Kenbridge project in Kenora, Ontario
PlantX Life expands indoor plant selling business to Austria through subsidiary Bloombox Club
Falcon Gold completes site visit and technical report on Esperanza Gold Project in Argentina
GreenBank portfolio company Staminier extends option period on potential major real estate acquisition
Psyched Wellness (CSE:PSYC, OTCQB:PSYCF) receives GRAS approval for Amanita Muscaria extract; gets green light to bulk produce, market products in the US
Vox Royalty (TSX-V:VOX) eyeing record year for its portfolio as it updates on partner progress
Maverix Metals acquires package of three royalties on gold projects in Nevada
CULT Food Science is innovating the future of food through cell-based product
World Copper receives environment approval to drill its Escalones project in Chile
Golden Shield Resources (CSE:GSRI) uncovers two new mineralized zones near Mazoa Hill target on its Marudi Mountain gold project in Guyana
Scottie Resources extends Blueberry Contact zone in British Columbia with more high-grade gold intercepts
Red Pine says its Phase 1 exploration on the Wawa gold project in Ontario is progressing “faster than planned”
Nextech AR Solutions Corp reports big rise in 2021 revenue as it grows repeat customers
Biocept appoints Dr Philippe Marchand as chief operating officer
Nickel on a tear as metal markets struggle to keep up with events
Los Andes Copper reports ‘excellent’ deeper results from hole CMV-001B at its Vizcachitas project in Chile
Thor Explorations says Segilola gold mine in Nigeria continued performing at budget in February 2022
Plurilock says its Aurora unit secures up to US$2 million line of credit
Kodiak extends the central Gate Zone at MPD project as it continues to intersect significant copper-gold grades
Bam Bam Resources (CSE:BBR) encouraged by Majuba Hill drilling, which shows potential for 'billion ton copper, silver, gold porphyry deposit'
Lifeist Wellness says CannMart cannabis subsidiary establishes supply agreement with Quebec provincial government
Tiidal Gaming Group says Sportsflare division launches first-of-its-kind player prop markets for popular esports title Dota 2 on its platfor
Benchmark Metals says engineering at Lawyers project is advancing towards permitting a gold and silver mine
Lion Copper and Gold appoints Steven Dischler as ESG vice president
Goldman Sachs (NYSE:GS) says sanctions could "meaningfully and sustainably" reduce Russian oil exports
10.02am: Dow enters correction territory
US stocks opened in the red on Tuesday as the Dow Jones Industrial Average entered the correction territory, while investors continued to be on edge about rising commodity prices and slow economic recovery amid an escalating war between Russia and Ukraine.
At the open, the Dow Jones lost 171 points or 0.5% at 32,645, while the S&P 500 was down by 0.7% and the tech-laden Nasdaq Composite shed 1.1%.
President Joe Biden is expected to impose a ban on the importation of Russian oil later this morning to punish Moscow for its brutality against its neighboring country— adding to the market volatility.
The international oil benchmark, Brent Crude, surged 5% following the announcement to tighten sanctions against Russian oil imports.
"Biden is reportedly preparing to announce a unilateral ban on imports of Russian oil, LNG, and coal as part of the latest actions to hold the country accountable for its invasion of Ukraine," noted Craig Erlam, senior market analyst, UK & EMEA, OANDA. "The "unilateral" aspect of that is the most important as far as markets are concerned which is why oil prices are only 5-6% higher today, rather than 15-20%."
Erlam said that it is a bold move from the US.
On Monday, the S&P 500 closed with the worst daily sell-off of 3% since May 2020. Tuesday’s opening for the broader index remained muted as the Ukraine-Russia conflict entered its 13th day. The Dow had closed with a loss of 800 points.
"The ripple effects from the invasion are severe and widespread and the worst may still be to come as traders desperately try to assess the fallout from potential supply disruptions of a wide range of commodities," Erlam said.
On the corporate front, Uber shares went up by 1% after the company announced a campaign to classify its workers as employees— allowing them to form unions.
6.35am: US stocks seen opening up
US stocks are expected to open tentatively higher after soaring commodity prices added to inflation concerns, sending benchmark indices lower as the war between Russia and Ukraine escalates.
Futures for the Dow Jones Industrial Average rose 0.28% in Tuesday pre-market trading, while those for the broader S&P 500 index gained 0.35% and the tech-heavy Nasdaq was just 0.07% higher.
Stocks closed with sharp losses on Monday as the prospect of sanctions on Russian exports sent the price of oil soaring.
The Dow Jones sank 2.37% to 32,817, while the Nasdaq shed 3.6% to 12,831 and the S&P 500 dropped 2.95% to 4,201, its sharpest daily decline since May 2020.
Other commodities have also been affected. The London Metal Exchange (LME) suspended trading in nickel after the metal briefly crossed $100,000 a ton early on Tuesday over concerns about Russian supply disruptions. Safe-haven gold added more than 3% to trade above $2,006 an ounce.
“Markets are continuing their steady but sharp declines in the absence of either a resolution to the conflict or a return of risk appetite,” commented Richard Hunter, head of markets at interactive investor. "Reverberations from the possibility of a ban on Russian oil sent the price of black gold higher once more, and up by 63% in 2022 alone.”
Hunter said the implied effect on inflation tempered any possibility of the buying of growth stocks, with the Nasdaq taking another lurch lower on Monday, taking year-to-date losses to 18%.
“The Dow Jones also suffered from an evaporation of appetite, now down by 9.7% in the year to date and in correction territory, joining the S&P500 which has lost 11.9% this year,” Hunter added.