WASHINGTON (Parliament Politics Magazine) – The growing fears of hostilities and tensions between Russia and the United States over Ukraine have caused financial markets around the world to plummet.
The Dow Jones fell 1.8 percent, the S&P 500 dropped over 2%, and the Nasdaq fell nearly 3% in New York.
The tumble occurred as US President Joe Biden accused Russia of hunting for justifications and reasons for an invasion. He warned the world of that happening at any time and was imminent.
Losses in the Asian continent lessened on Friday, with benchmark indices in Hong Kong and Japan falling by approximately 0.3 percent.
“There is a lot of anxiety out there, and nothing has been addressed between Russia and Ukraine as we approach the weekend,” the managing director of equity trading at Wedbush Securities, Michael James, said.
“The persisting weakness, particularly in growth names, is suggestive of rising concern, with sellers swamping buyers in almost every stock.”
On Thursday, President Joe Biden stated that military action may begin immediately.
The charges were labelled “baseless” by Russia, who accused the US of inflaming tensions.
However, investor concerns were heightened as Ukrainian soldiers and Russian-backed separatists exchanged fire in eastern Ukraine, causing the sell-off to escalate in late afternoon trade.
The drops, which impacted almost every sector of the S&P 500 and pushed the Dow to its largest daily percentage drop since November 30, were driven by technology and communication companies.
Oil futures plummeted over 2%, while US officials met with Saudi Arabia to discuss a “collaborative strategy” for controlling market pressures that root from a potential invasion of Ukraine by Russia, according to the White House.
The consumer staples sector, which was boosted by Walmart, was one of the few exceptions to the reductions.
The discount giant surged 4% after reporting excellent holiday sales, and executives predicted that as consumer concerns about rising costs of living grow, more people will flock to it.
Meanwhile, other less risky assets, such as gold, have risen to an eight-month high.
