[이코노믹리뷰=노성인 기자] New York stocks plunged on news of a US and UK embargo on Russian oil. It is believed that investor sentiment worsened as concerns about an economic slowdown increased due to a surge in raw material prices including international oil prices.
At the New York Stock Exchange (NYSE) on the 8th (local time), the Dow Jones Industrial Average closed at 32,632.64, down 184.74 points (0.56%) from the previous day. The Standard & Poor’s (S&P) 500 index fell 30.39 points (0.72%) to 4,170.70, and the Nasdaq index, which focuses on tech stocks, closed at 12,795.55, down 35.41 points (0.28%) from the battlefield.
The market’s risk-aversion sentiment was strengthened as international oil prices maintained an upward trend, recording more than $120 per barrel.
President Joe Biden signed an executive order at the White House on the morning of the same day banning the import of Russian crude oil, certain petroleum products, liquefied natural gas and coal. It also banned new US investment in the Russian energy sector or foreign companies investing in Russian energy production.
President Biden said the U.S. was taking action to punish Russia for waging a vicious war of choice in Ukraine. .
The UK also joined the US sanctions on the same day. The UK said in a statement that it would phase out imports of Russian oil by the end of the year to bolster Putin’s economic isolation.
Accordingly, West Texas Intermediate (WTI) for delivery in April on the New York Mercantile Exchange (NYMEX) rose by $4.30 (3.6%) to $123.70 per barrel. It rose 8% during the day to soar to $133.13 a barrel.
The yield on the 10-year U.S. Treasury bond rose to a high of 1.87% on the same day. Gold also continued to strengthen. The price of gold futures for delivery in April was 3.13% from the previous day, closing at $2,058.30 per ounce.
By sector, energy and consumer discretionary stocks rose, while consumer staples, health, and utility stocks fell more than 1%.
Tech stocks fluctuated. Tesla is up 2.46% and Nvidia is up 0.75%. Apple and Amazon fell 1.17% and 1.05%, respectively.
Oil refining and renewable energy stocks mostly recorded an upward trend amid a surge in international oil prices. Chevron rose 5.23% and ExxonMobil rose 0.75%. APA also rose 1.87%. Inphase Energy and Sun Power, which specialize in solar inverters, also surged 10.82% and 18.74%, respectively.
Experts said that the stock market is being affected by various variables, including Russia’s invasion of Ukraine, soaring commodity prices, and the Fed’s interest rate hike.
JJ Kinahan, chief investment strategist at TD Ameritrade, said, “I think the current market is responding to various external factors such as international oil prices. “It’s really hard to predict,” he said.
