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Dow Jones Records Worst Daily Slump of This Year as Russian-Ukrainian Tensions Worsen

UTC by Benjamin Godfrey · 3 min read
Dow Jones Records Worst Daily Slump of This Year as Russian-Ukrainian Tensions Worsen
Photo: NYSE / Twitter

Despite the Dow Jones slump, it was not all bad for the global stock market on Thursday as a number of corporations that shared their earnings report helped provide the cushion the market needed.

The global stock market recorded a slump as it still reeling from the Russian-Ukraine tensions, a geopolitical conflict that many world leaders fear may lead to war, and the heightened tensions has led the Dow Jones Industrial Average (INDEXDJX: .DJI) to record its worst daily growth for the year when it plunged 1.78%, shedding as much as 622.24 points to close Thursday’s session at 34,312.03.

While the Dow dropped as low as it could get, the S&P 500 Index (INDEXSP: .INX) was not spared as 94 points were dropped atop a 2.12% plunge to 4,380.26. The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) also dropped 2.88% to 13,716.72. The Russell 2000 Index (INDEXRUSSELL: RUT) continued on its bearish swing as it fell by 2.46% to 2,028.09.

While tensions were somewhat eased earlier this week as Russia says it has started evacuating its military personnel from the Ukrainian border, the latest plunge and its underlying sell-off were sparked when United States President Joe Biden said to reporters that the possibility that Russia will still invade Ukraine is still “very high” and that this could happen within “the next several days.”

“In the short term, the market is just moving to the indications that it’s seeing out of Russia,” Yung-Yu Ma, chief investment strategist at BMO Wealth Management, said. “That negativity and that additional cloud over the market definitely has a lot of weight right now.”

The so-called FAANG stocks led the bearish rally in the tech sector as observed on Thursday with Facebook’s parent company, Meta Platforms Inc (NASDAQ: FB) dropping 4.08% to $207.71 per share. Apple Inc (NASDAQ: AAPL) shed 2.13% to $168.88, Amazon.com Inc (NASDAQ: AMZN) lost 2.18% of its share value to $3,093.05. Netflix Inc (NASDAQ: NFLX), as well as Alphabet Inc (NASDAQ: GOOGL), also plunged 2.87% and 3.77% to close Thursday’s session at $386.67 and $2,650.78 respectively.

Additionally, Gold futures shot up by more than 1% while the benchmark US 10-year Treasury yield, which moves inversely to price, fell below 2% as bond prices gained.

Dow Jones Slump and the Stock Cushion with Corporate Earnings

Despite the Dow Jones slump, it was not all bad for the global stock market on Thursday as a number of corporations that shared their earnings report helped provide the cushion the market needed. Cisco Systems Inc (NASDAQ: CSCO) was amongst the biggest earners on Thursday with a 2.80% surge to $55.77 after the San Jose-based firm reported impressive earnings and raised future guidance.

“Not only is the market trying to navigate the geopolitical tensions between Russia and Ukraine, it’s also trying to navigate an earnings minefield,” Adam Sarhan, CEO of 50 Park Investments, said.

While jobless claims for the past week came in at 248,000, up from 218,000 projected from analysts polled by Dow Jones, investors seem to be more focused on the Russian-Ukrainian brawl than economic projections, a position that makes no much difference in how the market is being priced in.

Business News, Indices, Market News, News, Stocks
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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